Question
Bob’s preferences over biscuits (x) and other goods (y) are given by . His income is...
Bob’s preferences over biscuits (x) and other goods (y) are
given by . His income is 10. a. Find Bob’s demand for x when the
price of y is 2 b. When the price of x increases from 1 to 3,
calculate the change in consumer surplus. Draw a graph to
illustrate.
Bob’s preferences over biscuits (x) and other goods (y) are given
by U(x,y)=xy. His income is 10.
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