A consumer who has a utility function modeled as U(x, y) = min (3x, 9y) is...

 

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A consumer who has a utility function modeled as U(x, y) = min (3x, 9y) is faced with the prices of $2 and $6 per unit of x and y respectively. The consumer will spend his/her entire disposable income of $24. How many units of x and y will the consumer consume that will provide the maximum utility? Also, what does this consumer perceive goods x and y as? (a) 6 units of x and 2 units of y; perfect substitutes. (b) 2 units of x and 6 units of y; perfect substitutes. (c) 2 units of x and 9 units of y; perfect normal goods. (d) 6 units of x and 2 units of y; perfect complements. (e) None of the above. A consumer who has a utility function modeled as U(x, y) = min (3x, 9y) is faced with the prices of $2 and $6 per unit of x and y respectively. The consumer will spend his/her entire disposable income of $24. How many units of x and y will the consumer consume that will provide the maximum utility? Also, what does this consumer perceive goods x and y as? (a) 6 units of x and 2 units of y; perfect substitutes. (b) 2 units of x and 6 units of y; perfect substitutes. (c) 2 units of x and 9 units of y; perfect normal goods. (d) 6 units of x and 2 units of y; perfect complements. (e) None of the above.

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d 6 units of x and 2 units of y perfect complements explanatonIn this case the consumer will want to ... View the full answer