Question
Question 3. Suppose Jessica's utility function is given by: U(x1, x2 ) = min{5x1, 3x2} She earns $180 and the price of x1 is $1
Question 3. Suppose Jessica's utility function is given by: U(x1, x2 ) = min{5x1, 3x2} She earns $180 and the price of x1 is $1 and the price of x2 is $3.
a) What is the optimal consumption bundle for Jessica?
b) What minimum income does Jessica needs to obtain a utility level of 600?
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Economics Principles and Policy
Authors: William J. Baumol, Alan S. Blinder
12th edition
978-0538453677, 538453672, 978-0538453622, 538453621, 978-0538453653
