UXY 2X Y the consumer has 40 to spend and the prices of goo

U(X,Y) = 2X +Y. the consumer has $40 to spend and the prices of goods are Px= $4 and Py= $1.

Solution

All the bundles that he can afford are given below in a table

Good X 0 5 10 15 20
Good Y 40 30 20 10 0
U(X,Y) = 2X +Y. the consumer has $40 to spend and the prices of goods are Px= $4 and Py= $1.SolutionAll the bundles that he can afford are given below in a tabl

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