An individual values two goods, X and Y, according to the following utility function: U (X,Y)= 6 (0.5 X-0.88 +0.5 Y-0.88)-1.14 The price of X is Pr-4, and the price of Y is Py-4. The individual has 16 dollars. How much X and Y should this individual buy? (Round answers to the nearest two decimals. For example, 1.666 rounds to 1.67.) X Number Y Number
An individual values two goods, X and Y, according to the following utility function: U (X,Y)= 6 (0.5 X-0.88 +0.5 Y-0.88)-1.14 The price of X is Pr-4, and the price of Y is Py-4. The individual has 16 dollars. How much X and Y should this individual buy? (Round answers to the nearest two decimals. For example, 1.666 rounds to 1.67.) X Number Y Number
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 6QP
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