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Managerial Economics 12th Edition by Christopher Thomas,Charles Maurice
Edition 12ISBN: 978-0078021909Managerial Economics 12th Edition by Christopher Thomas,Charles Maurice
Edition 12ISBN: 978-0078021909 Exercise 2
Assume a consumer with the utility function
U = U ( X,Y ) = ( X + 2)( Y + 1)
and the budget constraint ( M = 95, P x = 10, and P y = 5):
95 = 10 X + 5 Y
a. Set up the constrained maximization problem, and derive the first-order conditions.
b. Find the amounts of goods X and Y the consumer will purchase in equilibrium.
U = U ( X,Y ) = ( X + 2)( Y + 1)
and the budget constraint ( M = 95, P x = 10, and P y = 5):
95 = 10 X + 5 Y
a. Set up the constrained maximization problem, and derive the first-order conditions.
b. Find the amounts of goods X and Y the consumer will purchase in equilibrium.
Explanation
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Managerial Economics 12th Edition by Christopher Thomas,Charles Maurice
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