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Business, 17.01.2020 09:31 sheazy3709
Suppose a consumer's utility function is given by u(x, y) = x*y. also the consumer has $288 to spend, and the price of x, px=16, and the price of y, py=1: a. how much x and y should the consumer purchase in order to maximize her utility? b. how much total utility does the consumer recieve? c. now suppose px decreases to 9. what is the new bundle of x and y that the consumer will demand? d. how much money would the consumer need in order to have the same utility level after the price chage as before the price change? e. of total change in the quantity demanded of x, how much is due to the substitution effect and how much is due to the income effect?
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Suppose a consumer's utility function is given by u(x, y) = x*y. also the consumer has $288 to spend...
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