A consumer’s utility

A consumer’s utility

A consumer’s utility function is U(X,Y) = X Y . Where X is the number of hole of golf that she can play and Y a composite good. The price of X is px = 2, the price of Y is py = 1, and her income M = 144 .Assume that she can receive satisfaction from X only if X is either a 9 or 18 hole round of golf Determine the optimal quantity of good X and Y that this individual will consume. (Remember that X is the number of holes of golf). Suppose the price of X increases to 4 how many rounds of golf (either 9 or 19 hole rounds) will she play? How much of Y will she consume? When the price of X is 4 is the individual choosing a level of X and 1 where the marginal rate of substitution is equal to the price ratio? Explain.

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