If a = 6, b = 7, the price of good 1 is $5/unit, the price of good 2 if $6/unit and my income is $10, how much good 2 will I consume to maximize my utility?

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
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My utility over goods 1 and 2 is given by: u (x₁, x2) = min {2,}
-
Where is the quantity of good 1 I consume and 2 is the quantity of good 2 1 consume.
Assuming I purchase only goods 1 and 2...
W
If a = 6, b =7, the price of good 1 is $5/unit, the price of good 2 if $6/unit and my income is $10, how much good 2 will I
consume to maximize my utility?
(Note: The answer may not be a whole number, so round your answer to the nearest hundredth)
(Note: The numbers may change between questions, so read carefully)
Transcribed Image Text:My utility over goods 1 and 2 is given by: u (x₁, x2) = min {2,} - Where is the quantity of good 1 I consume and 2 is the quantity of good 2 1 consume. Assuming I purchase only goods 1 and 2... W If a = 6, b =7, the price of good 1 is $5/unit, the price of good 2 if $6/unit and my income is $10, how much good 2 will I consume to maximize my utility? (Note: The answer may not be a whole number, so round your answer to the nearest hundredth) (Note: The numbers may change between questions, so read carefully)
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