1. Suppose a consumer's utility function is: U (x₁, x2) = x²x3. Furthermore, suppose the con- sumer's disposable income is $80, and the prices of the two goods are: x₁ = 4 and x2 = 2. Obtain the optimal amounts of ₁ and ₂ that the utility maximizing consumer would buy.

1. Suppose a consumer's utility function is: U (x₁, x2) = x²x3. Furthermore, suppose the con- sumer's disposable income is $80, and the prices of the two goods are: x₁ = 4 and x2 = 2. Obtain the optimal amounts of ₁ and ₂ that the utility maximizing consumer would buy.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 1SQP

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