How you can find out a utility function, Macroeconomics

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How you can find out a utility function

Mary's budget constraint is given by P_x=$5, P_y=$2 and P_xX + P_yY = 60. Assume the Mary's utility function is given by the equation U=XY, where U is the level of utility determined in the utile and X and Y refer to good X and good Y respectively. Suppose you are also told that the marginal utility of good X can be expressed as the MU_x=Y; and the marginal utility of good Y can be expressed as MU_Y=X. How you can find out a utility function for which the chosen bundle would not change when the price of good X doubled?

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Macroeconomics: How you can find out a utility function

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Q : How you can find out a utility function

Mary's budget constraint is given by Px=$5, Py=$2 and Px X + PyY = 60. Assume the Mary's utility function is given by the equation U=XY, where U is the level of utility determined in the utile and X and Y refer to good X and good Y respectively.

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Macroeconomics: How you can find out a utility function

Reference No:- TGS0871826

Have a Question? (oR Write a Review)

Recent Questions Asked Macroeconomics

Q : Determine the new level of real output

Q : What might you expect to happen to real gdp

Q : Explain what will be unemployment rate

Q : Probability of jet fighter surviving combat mission

Q : How you can find out a utility function

Q : Determine the cross-price elasticity of demand for product

Q : Explain what implication has the revaluation of the euro

Q : Luggage makes the connecting flight

Q : In what ways have these problems affected employees

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Request for Solution File

Ask an Expert for Answer!!

Macroeconomics: How you can find out a utility function

Reference No:- TGS0871826

Recent Questions Asked Macroeconomics

Q : Determine the new level of real output

Q : What might you expect to happen to real gdp

Q : Explain what will be unemployment rate

Q : Probability of jet fighter surviving combat mission

Q : How you can find out a utility function

Q : Determine the cross-price elasticity of demand for product

Q : Explain what implication has the revaluation of the euro

Q : Luggage makes the connecting flight

Q : In what ways have these problems affected employees

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