Question #317044

consider a consumer with income rupees hundred there are two commodities 1 and 2 to choose from if the consumer spends all his income on good one he can buy 5 units of it if he spent all his income on good to he can buy 20 units of it is based on the given information attempt the following

1
Expert's answer
2022-03-25T15:07:24-0400

Utility Maximizing rule =MUxMUy=PxPy\frac{MUx}{MUy}=\frac{Px}{Py}


The total income= R100R100

Price of good 1(x)=1005;Px=R201(x) = \frac{100}{5}; Px=R20


Price of good 2(y)=10020;Py=R5(y)= \frac{100}{20}; Py = R5


From the above information we can have a budget line.

100=20x+5y100 = 20x+5y






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Comments

Thasni
26.08.22, 16:34

super

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