Tom spends all his $100 weekly income on two goods, X and Y. His utility function is

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Tom spends all his $100 weekly income on two goods, X and Y. His utility function is given by U(X, Y) = XY. If PX = 4 and PY = 10, how much of each good should he buy?

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Microeconomics and Behavior

ISBN: 978-0078021695

9th edition

Authors: Robert Frank

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Question Posted: Dec 12, 2014 10:19 AM

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Tom spends all his $100 weekly income on two goods, X and Y. His utility function is

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Solve the budget constraint 100 4X l0Y to get Y 10 04X ...View the full answer

Microeconomics and Behavior

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