Question
Zeus spends his pension (2279.4 dollars per year) on only two goods: good X and good Y. His utility function is given by U(x,y) =min(8.1x,4.5y)
Zeus spends his pension (2279.4 dollars per year) on only two goods: good X and good Y. His utility function is given by
U(x,y) =min(8.1x,4.5y)
If the price of good X increases by 9.2% and the price of good Y increases by 9.9%, by how many dollars must Zeus' pension rise such that his utility remains the same?
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The Great Divide Unequal Societies And What We Can Do About Them
Authors: Joseph E Stiglitz
1st Edition
0393352188, 9780393352184
