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Suppose an individual's utility function is given by the following expression: U(q1,q2)=q1+3q2 Suppose the individual has $12 dollars to spend on the two goods (y=12).
Suppose an individual's utility function is given by the following expression:
U(q1,q2)=q1+3q2
Suppose the individual has $12 dollars to spend on the two goods (y=12). If the price of good #1 is $3 (p1=3) and the price of good #2 is $6 (p2=6), how much of good #1 will the individual demand and how much of good #2 will the individual demand?
Quantity demanded of good #1 =
Quantity demanded of good #2 =
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