Question: Diogo has a utility function: U = 100x0.5,0.5 The price of X is px = $2, the price of Z is pz = $2, and

 Diogo has a utility function: U = 100x0.5,0.5 The price of

X is px = $2, the price of Z is pz =

Diogo has a utility function: U = 100x0.5,0.5 The price of X is px = $2, the price of Z is pz = $2, and his income is $800. What is Diogo's optimal bundle? (round your answer to one decimal place) X= units Z. = units

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!