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Kim s utility function is given by U XY For this utility function MUx Y and MUy X a If good X costs $6 and good Y costs $3 what share of Kim s utility-maximizing bundle is made up of good

Kim s utility function is given by U = XY. For this utility function, MUx = Y and MUy = X. a. If good X costs $6 and good Y costs $3, what share of Kim s utility-maximizing bundle is made up of good X? Of good Y? b. If the price of good Y rises to $4, what happens to the shares of X and Y in Kim s utility-maximizing bundle?

Apr 03 2020 View more View Less

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