Suppose That There Are Two Goods, X and Y

question 101

Essay

Suppose that there are two goods, X and Y. The utility function is U = X²Y². The price of X is P, and the price of Y is $50. Income is $600. Derive the demand for X as a function of P.

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Definitions:

Substrate

A reactant in a chemical reaction upon which enzymes act.

Diene

Organic compounds containing two double bonds, which may participate in various polymerization and other chemical reactions.

Dienophile

A compound with an electron-deficient double or triple bond that readily reacts with a diene in a Diels-Alder reaction.

Major Organic Product

The most abundant product formed in a chemical reaction involving organic compounds, often favored kinetically or thermodynamically.