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Mathematics, 17.03.2021 23:40 sepdentalcare8774
Tim gets utility from only two goods, rice (R) and beans (B). His preferences are represented by the utility function U(R, B)=R*B^2
a. Suppose a unit of rice costs $4, a unit of beans costs $5, and Tim’s income is $60000. Find Tim’s optimal bundle.
b. Suppose the price of beans falls to $4. How does Tim’s quantity of each good change
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Tim gets utility from only two goods, rice (R) and beans (B). His preferences are represented by the...
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