Question
Hans has $60 which he decides to spend on x and y .Commodity x costs $15 per unit and commodity y costs $10 per unit.
Hans has $60 which he decides to spend onxandy.Commodity x costs $15 per unit and commodityycosts $10 per unit. He has the utility functionU(x,y)=x2y2and he can purchase fractionalunits ofxandy. Hans willchoose
a.only x
b.Some of each commodity but more x than y.
c.only y
d.Some of each commodity but more y than x.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
