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A consumer enjoys two goods, X and Y. The price of X is $5 and the price of Y is $10 and the consumer has $1500 to spend on these goods. The utility function of the consumer is U = Y √x ; thus MUx = 1/2 Y/ √x and MUy = √x . What bundle of goods will maximize the utility of the consumer subject to the budget constraint?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9481861

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