A Consumer Has U = X⁰

question 40

Short Answer

A consumer has U = X^0.5Y^0.5 for a utility function, with MU_x = 0.5 X^-0.5Y^0.5 and MU_y = 0.5 X^0.5Y^-0.5. If she has income of $100, the price of X is $5, and the price of Y is $10, this consumer will use _____units of X and _____units of Y in equilibrium.

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Definitions:

Insufficient Thiamine

A condition resulting from a lack of thiamine (vitamin B1), which can lead to neurological problems and diseases such as beriberi.

Korsakoff's Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), often linked to alcohol abuse, characterized by memory loss, confabulation, and difficulty acquiring new information.

Insufficient Dopamine

A condition where there is an inadequate level of dopamine in the brain, which can affect mood, movement, and cognition.

Excessive Dopamine

An abnormally high level of dopamine in the brain, which can lead to various disorders, including schizophrenia and addiction.