Solve this problem on paper, as usual, but you will also submit the numerical answer from...

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Solve this problem on paper, as usual, but you will also submit the numerical answer from part (a) in the space at the bottom of the question. Suppose Cody has utility function U (x, y) = ax+By over goods x and y, where a = 1 and B = 2. a) If prices are Px=4 and Py=6 and income is 5000, how many units of good x will Cody purchase? Enter this number in the space below (You can round to the nearest integer if needed.) b) Suppose that the price of x doubles, but Cody receives compensation so that he remains exactly as well off as before. How many units will he buy in this scenario? Show your derivation clearly. Solve this problem on paper, as usual, but you will also submit the numerical answer from part (a) in the space at the bottom of the question. Suppose Cody has utility function U (x, y) = ax+By over goods x and y, where a = 1 and B = 2. a) If prices are Px=4 and Py=6 and income is 5000, how many units of good x will Cody purchase? Enter this number in the space below (You can round to the nearest integer if needed.) b) Suppose that the price of x doubles, but Cody receives compensation so that he remains exactly as well off as before. How many units will he buy in this scenario? Show your derivation clearly.

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To solve part a Given Utility function Uxy ax by a 1 b 2 Prices Px 4 Py 6 Income 5000 The budget c... View the full answer