Discussion Problem_(26)

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duck

Jun 02, 2013; 3:22am

Q1) Suppose, Utility of a consumer is given by:
U(x,y) = y+log(x)
Price of x = 1, Price of y=10 and Income = 5.
Find the optimal consumption bundle.

Mauli

Jun 02, 2013; 4:40am

Re: Discussion Problem_(26)

This post was updated on Jun 02, 2013; 10:35am.

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rohan

Jun 02, 2013; 8:44am

(5,0)

laracroft

Jun 02, 2013; 9:52am

In reply to this post by duck

(5,0) because its a quasi-linear utility function. and all income will be spent on good X ( since income is insufficient to buy good Y)

Sumit

Jun 02, 2013; 10:42am

In reply to this post by duck

Optimal consumption bundle (5,0)...

M.A Economics
Delhi School of Economics
2013-15
Email Id:sumit.sharmagi@gmail.com

Mauli

Jun 02, 2013; 10:44am

In reply to this post by duck

i went badly wrong in this.
i did y for x and x for y. and what not. thanks croft for gvng an explanation.

laracroft

Jun 02, 2013; 11:37am

Hi mauli
No problem !! :) :) :)
Ur welcome !!