Details of this Paper

ECO - Graph the budget line

Description

solution


Question

Question;Consider a consumer with utility u(x, y) =?xy. The consumer has $100 to spend, and the price of X is $5 and the price of Y is $2.(1) Graph the budget line.(2) Find the point that maximizes the consumers utility given the budget. Draw the indifference curve through this point.(3) What are the expenditure shares?

 

Paper#57042 | Written in 18-Jul-2015

Price : $22
SiteLock