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Floyd's utility function is given by U(X,Y) = 2XY. MUX = 2Y and MUY = 2X. The price of good X is PX = 2,
Floyd's utility function is given by U(X,Y) = 2XY. MUX = 2Y and MUY = 2X. The price of good X is PX = 2, whereas the price of good Y is PY = 1. Floyd's income is 1,000. Which is true given that the price of good X falls to 1
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Managerial Economics and Strategy
Authors: Jeffrey M. Perloff, James A. Brander
1st edition
978-0137036059, 133379094, 321566440, 137036051, 9780133379099, 978-0321566447
