Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

Creych

  • 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?

  • This Question is Open
  1. surjeet
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    MU of x / MU of y = Y/ 2x this should be equal to price ratio P of x / P of y = 1 / 2

  2. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy