Question: 21. Suppose the consumer's utility function is given by U(x y) = xy + y where MUx =y MUy = x+1 The equation for this

21. Suppose the consumer's utility function is given by U(x y)

21. Suppose the consumer's utility function is given by U(x y) = xy + y where MUx =y MUy = x+1 The equation for this consumer's demand curve for x when I > P. is: a) xd = 0 b) xd = 2P c) xd = 2P d) xd = 1/2 Ans: C Difficulty: Hard Heading: Optimal Choice and Demand

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