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Ali has a utility function u(x,y) = 5lnx + 2lny. Consider that the price of x is 100 TL. the price ofy is 40 TL and mont
Posted: Thu May 19, 2022 10:18 am
by answerhappygod
- Ali Has A Utility Function U X Y 5lnx 2lny Consider That The Price Of X Is 100 Tl The Price Ofy Is 40 Tl And Mont 1 (176.18 KiB) Viewed 33 times
Ali has a utility function u(x,y) = 5lnx + 2lny. Consider that the price of x is 100 TL. the price ofy is 40 TL and monthly income is 1400 TL. Mehmet uses all of his income each month to purchase x and y. Suppose price of y increased by one unit. How much does the optimal value of u(x,y) change? Answer by using Envelope Theorem. (Answers derived by resolving the optimization problem will not be accepted.)