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  • 3 years ago

U(x,y)=xy^2 MUx=y^2, MUy=2xy Price per unit of good A=2 and for B=4. Income is 1200. How to calculate optimal quantity of good A and good B for this consumer?

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  1. surjeet
    • 2 years ago
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    MU of x / MU of y = Y/ 2x this should be equal to price ratio P of x / P of y = 1 / 2

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