Question
Mr. Wang consumes two goods X and Y; his utility function is U=X 2 Y 2 income I=500 yuan. The prices are respectively P X
Mr. Wang consumes two goods X and Y; his utility function is U=X2Y2income I=500 yuan. The prices are respectively PX=2 yuan, PY=5 yuan
1Find his demand function respectively for X and Y, quantity consumed under current prices and marginal utility of income.
2If the government subsidizes the good X, so that PX=1 yuan, find his new quantities consumed for X and Y.
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Principles Of Financial Accounting
Authors: John J Wild, Ken W Shaw, Barbara Chiappetta
22nd Edition
0077632893, 9780077632892
