Two consumers have utility functions given by UA = x¹/3y2/3 and UB = x¹/3 + y2/3 If each consumer has an income of 10 and the price of each good is 1, do the two consumers choose the same consumption bundle to maximize their utility? Would they always choose the same bundle for any income and prices?

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter20: Consumer Choice And Elasticity
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1. Two consumers have utility functions given by UA x¹/3y2/3 and UB x¹/3 + y2/³.
If each consumer has an income of 10 and the price of each good is 1, do the two
consumers choose the same consumption bundle to maximize their utility? Would
they always choose the same bundle for any income and prices?
Transcribed Image Text:= 1. Two consumers have utility functions given by UA x¹/3y2/3 and UB x¹/3 + y2/³. If each consumer has an income of 10 and the price of each good is 1, do the two consumers choose the same consumption bundle to maximize their utility? Would they always choose the same bundle for any income and prices?
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