Question: My utility over goods 1 and 2 is given by: u(x1, x) = xx/2 Where is the quantity of good 1 I consume and

My utility over goods 1 and 2 is given by: u(x1, x)

 

My utility over goods 1 and 2 is given by: u(x1, x) = xx/2 Where is the quantity of good 1 I consume and 2 is the quantity of good 2 I consume. Assuming I purchase only goods 1 and 2... If a = 10, b = 3, the price of good 1 is $9/unit, the price of good 2 if $9/unit and my income is $843, how much good 2 will I consume to maximize my utility? (Note: The answer may not be a whole number, so round your answer to the nearest hundredth) (Note: The numbers may change between questions, so read carefully)

Step by Step Solution

3.48 Rating (145 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Maximise uxx xx x10x3 M 9x 9x2 8... View full answer

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 Law Questions!