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Suppose Ben has a utility function U(x,y)= 4 * x^(0.5) * y^(0.8) The price of x is 2 dollars and the price of y is also 2 dollars. Explain WITHOUT USING ANY MATH AT ALL, just in a few words, which good is consumed more. Does Ben buy more x than y, or more y than x? Or does Ben consume equal amounts of x and y?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9481949

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