Question
Utility function: u(x,y)= (x^1/3)(y^2/3) a) Assume px=2,py=4, I=36 Find the optimal bundle b) Let (px,py,I) remain random, find the indirect utility function v(px,py,I) C py
Utility function: u(x,y)= (x^1/3)(y^2/3)
a) Assume px=2,py=4, I=36 Find the optimal bundle
b) Let (px,py,I) remain random, find the indirect utility function v(px,py,I)
C py becomes=6 whilst x is the same (px=2). What is the least amount of income needed to reach the same level of utility as the prices of part (a)
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Microeconomics For Today
Authors: Irvin B. Tucker
10th Edition
1337613061, 978-1337613064
