Solution-Derive the quantity of consumption

Derive the quantity of consumption

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Reference no: EM131067880

In a hypothetical economy, consumers consume two goods - Good 1 and Good 2. Assume that the utility function of a consumer is given by U=Q1Q2 (Qi referring to amount of consumption of the good), Income (Y) of the consumer=100; prices of the goods P1=2 and P2=5. Derive the quantity of consumption of each good by the consumer at equilibrium.

a) 25, 10

b) 10, 10

c) 25, 25

d) 10, 25

Reference no: EM131067880

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Derive the quantity of consumption : Assume that the utility function of a consumer is given by U=Q1Q2 (Qi referring to amount of consumption of the good), Income (Y) of the consumer=100; prices of the goods P1=2 and P2=5. Derive the quantity of consumption of each good by the consum..

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Derive the quantity of consumption

Reference no: EM131067880

Reference no: EM131067880

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