How much of each good will he demand

Reference no: EM133442167

Max has a utility function U (x,y) = 2xy +1. The prices of x and y are both $1 and Max has an income of $20.

a. how much of each good will he demand?

b. A tax is placed on x so that x now costs Max $2 while his income and the price of y stay the same. How much good x does he demand?

Reference no: EM133442167

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