Question

Suppose a consumer’s preferences can be represented by the utility functionU(X,Y) = Min (2X,Y). Also,

suppose the consumer has $105 to spend and the price of Good X

is PX = $5 and the price of Good Y is PY = $1. If the consumer maximizes their utility subject

to their budget constraint, how much of Good X and how much of Good Y will the consumer

purchase?

X* =

Y* =

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