Question in ozland the price of milk is 4l and the price of, Ask an Expert

Economics

Question: In Ozland, the price of milk is 4/L, and the price of water is 10/L. Ozland is famous for equality because every resident in Ozland has a wealth of $17.

a. Chelsea has the utility function u(x₁, x₂) = x₁ + 47 √(x₂₎. what is the optimal amount of water for her?

b. One day, Chelsea dig out some gold from her front yard, and now she has become the richest Ozlander with a wealth of $2212. How much water should Chelsea consume now?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92597808

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