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Suppose a consumer's preferences are represented by the utility function U(X,Y) = X 3 *Y 2 . Therefore, MU x = 3X 2 Y 2
Suppose a consumer's preferences are represented by the utility function U(X,Y) = X3*Y2. Therefore, MUx = 3X2Y2 MUy = 2X3Y Also, suppose the consumer has $110 to spend (M = $110), PY = 1, and that they spend all of their money on goods X and Y. Also, assume the consumer maximizes their utility subject to their budget constraint. Complete the following table:
Px | Quantity Demanded of X |
$1 | |
$2 | |
$3 |
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