A consumer has a daily income of $240 to buy two goods (X, Y). The price of X is $8 and the price of Y is $3. T consumer utility function is given by U(X,Y)= X²Y¹/2 You are also told that his marginal utilities are MUX = 2XY¹/2 MUy = (²) 2. Suppose this consumer decides to consume only 25 units of good Y while remaining with the same utility bundle level found in question (1). Find the new level of good X?

A consumer has a daily income of $240 to buy two goods (X, Y). The price of X is $8 and the price of Y is $3. T consumer utility function is given by U(X,Y)= X²Y¹/2 You are also told that his marginal utilities are MUX = 2XY¹/2 MUy = (²) 2. Suppose this consumer decides to consume only 25 units of good Y while remaining with the same utility bundle level found in question (1). Find the new level of good X?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 6QP

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Question

PROBLEM 2 (
A consumer has a daily income of $240 to buy two goods (X, Y). The price of X is $8 and the price of Y is $3. The
consumer utility function is given by
U(X,Y) = X2y1/2
You are also told that his marginal utilities are
MUX = 2XY¹/2
MUY = (²)
2. Suppose this consumer decides to consume only 25 units of good Y while remaining with the same utility
bundle level found in question (1). Find the new level of good X?
ANSWER

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ISBN:

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