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Tom spends all his $200 weekly income on two goods, X an Y. His utility function is given by (U(X,Y)=2(X^(1/2))(Y^(1/2)). If P(X)=2 and P(Y)=8, how
Tom spends all his $200 weekly income on two goods, X an Y. His utility function is given by (U(X,Y)=2(X^(1/2))(Y^(1/2)). If P(X)=2 and P(Y)=8, how much of each good should he buy? Show your work.
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