Suppose that Maureen believes that name-brand laundry detergent is twice as effective as generic laundry detergent but

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Suppose that Maureen believes that name-brand laundry detergent is twice as effective as generic laundry detergent but that the two goods are otherwise identical. Therefore, her utility function is U(X,Y) = X + 2Y, where X is ounces of generic detergent and Y is ounces of name-brand detergent. The price of generic detergent is PX and the price of name-brand detergent is PY. Income is I. Derive Maureen's demand curves for X and for Y as a function of PX, PY, and I.
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Microeconomics

ISBN: 9781464146978

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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