Assume that at a specific level of utility, the indifference curve for a given household consuming goods x and y can be described by: 288 / x Suppose this consumer has $96 to spend and x costs $4 per unit and y costs $2 per. This results in the following budget constraint: y=- M = P₂x+P_y, Y⇒98= 4x+2y How much x and y will the household choose to purchase?

Q&A Education