The consumer’s utility function is U(c,k) = 5c + k, where c denotes the quantity of good C that the consumer consumes an
Posted: Thu May 19, 2022 8:04 am
The consumer’s utility function is U(c,k) = 5c + k, where c
denotes the quantity of good C that the consumer consumes and k
denotes the quantity of good K that the consumer consumes. The
price per unit of good C is 20 euros and the price per unit of good
K is 5 euros. Consumer’s income is 300 euros. Assume that the
consumer is a rational person. Find, how many units of good C and
how many units of good K will this rational consumer consume in
given conditions (i.e. C*=? and K*=?)
denotes the quantity of good C that the consumer consumes and k
denotes the quantity of good K that the consumer consumes. The
price per unit of good C is 20 euros and the price per unit of good
K is 5 euros. Consumer’s income is 300 euros. Assume that the
consumer is a rational person. Find, how many units of good C and
how many units of good K will this rational consumer consume in
given conditions (i.e. C*=? and K*=?)