Sharon has the following utility function: U(X,Y) = X + Y Where X is her consumption of
Question:
a) Derive Sharon’s demand for candy bars and espressos.
b) Assume that her income I = $100. How many candy bars and how many espressos will Sharon consume?
c) What is the marginal utility of income?
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a Using the Lagrangian method the Lagrangian equation is f X Y l P X X P Y Y I To find the demand fu...View the full answer
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