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

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
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An Individual values two goods, X and Y, according to the following utility function:
-1.14
U(X,Y)= 6 (0.5 X-0.88 +0.5 Y-0.88)
The price of X is P4, 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
Transcribed Image Text:An Individual values two goods, X and Y, according to the following utility function: -1.14 U(X,Y)= 6 (0.5 X-0.88 +0.5 Y-0.88) The price of X is P4, 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
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