der a consumer with the utility function Ur.v) = xy where x is the quantity of good X and y is the quantity of good Y and where a and bare positive constants. Let be the price of good X, be Py ice of good Y, and M be the consumer's income. What is the consumer's optimal level of utility (or the consumer's indirect utility) when p, = 10 and p, = 20 , when M=200 and when a=b=2?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Consider a consumer with the utility function uGr. v) = rayb where x is the quantity of good X and y is the quantity of good Y and where a and b are positive constants. Let
Px
be the price of good X,
be
Py
the price of good Y, and M be the consumer's income. What is the consumer's optimal level of utility (or the consumer's indirect utility) when px = 10 and p, = 20 , when M=200 and when a=b=2?
Transcribed Image Text:Consider a consumer with the utility function uGr. v) = rayb where x is the quantity of good X and y is the quantity of good Y and where a and b are positive constants. Let Px be the price of good X, be Py the price of good Y, and M be the consumer's income. What is the consumer's optimal level of utility (or the consumer's indirect utility) when px = 10 and p, = 20 , when M=200 and when a=b=2?
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