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Goods X and Y have unit prices pr and py respectively. The utility to a consumer of buying quantity x of X and quantity
Goods X and Y have unit prices pr and py respectively. The utility to a consumer of buying quantity x of X and quantity y of Y is 1 u(x, y) = 180 x + 2y (As usual, assume x and y are nonnegative.) Compute the Hicksian demand of X if px = 2, py = 5, and U = 90. That is, find the quantity of X the consumer buys to minimize the amount of money spent on the two goods, while maintaining a utility of at least 90. xh (2,5,90) = sqrt(2/630) How much money does the consumer spend on good X in that case? 2sqrt(2//630)
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