Question
Suppose Anne's utility function for food (X) and clothing (Y) is U(X, Y) = 8X1/2 + Y. She faces prices Px, Py and income I.
Suppose Anne's utility function for food (X) and clothing (Y) is U(X, Y) = 8X1/2 + Y. She faces prices Px, Py and income I. Assume an interior solution and find Anne's demand functions for X and Y.
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Economics Principles and Policy
Authors: William Baumol, Alan Blinder
13th edition
1305280595, 1305280598, 9781305465626 , 978-1305280595
