Aconsumers utility is given by uxyx025y075 to be clear , Ask an Expert

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A consumer's utility is given by U(X,Y)=X^0.25*Y^0.75. (To be clear, ^ denotes exponentiation, so the utility function is X to the 0.25 power multiplied by Y to the 0.75 power.) Given this utility function, MUx=0.25X^(-0.75)*Y^0.75, and MUy=0.75X^0.25*Y^(-0.25). (You might recognize this is a Cobb-Douglas utility function as discussed in our Lecture 3 handout with A=1, alpha=0.25 and beta=0.75.) The consumer's income is $200, Px=$5 and Py=$2. What is the number of units of good X in the consumer's utility-maximizing bundle of goods?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91720559

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