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Hans has $27 which he decides to spend on x and y. commodity x costs $16 per unit and commodity y costs $10 per unit.
Hans has $27 which he decides to spend on x and y. commodity x costs $16 per unit and commodity y costs $10 per unit. He has the utility functionU(x, y)=5x2+2y2and he can purchase fractional units of x and y. Hans will chose...
a.Only y.
b.Some of each commodity but more of x than of y.
c.Some of each commodity but more of y than of x.
d.Equal amounts of the two commodity.
e.Only x.
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