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Suppose Jane buys only two goods X and Y , and she spends an income I on these two products. Suppose the price of X is px and the price of Y is py. She derives utility by consuming X and Y. The amount of utility she gets by consuming x units X and y units of Y is given by the utility function U(x, y) = xy.
2. Determine her demand curve for X.
3. How would your answer change if her utility function is U(x, y) = x + 2y?
assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision
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What will the inflation rate be?
Estimate the demand function
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