Consider an individual whose preferences are described by


Consider an individual whose preferences are described by the utility function is U = X0.5Y0.5. If she consumes 2 units of X and 8 units of Y, then some level of utility will be experienced. If the individual instead consumes 4 units of X, how much of good Y must she consume in order to attain the level of utility associated with 2 units of X and 8 units of Y?

  • Y = 1
  • Y = 2
  • Y = 3
  • Y = 4
  • Y = 5
  • Y = 6

Solution Preview :

Prepared by a verified Expert
Business Management: Consider an individual whose preferences are described by
Reference No:- TGS01656047

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)