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Okay, so suppose you only consume only two goods, x and y , and your utility function is described as u equals u , x
Okay, so suppose you only consume only two goods, x and y , and your utility function is described as u equals u , x and y equals xy . Suppose your income is $ 36 , the price of x is $ 2 , and the price of y is $ 3 . Hint, mu x equals y , mu y equals x . How much x do you consume? How much y do you consume? What is your utility level? If the price of x changes to $ 18 , how much income do you need to maintain the same utility level
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