Microeconomics:Consider an individual whose preferences are described by the utility function is U = X0.5Y0.5.

Question

If she consumes 3 units of X and 4 units of Y, then some level of utility will be experienced. If the individual instead consumes 2 units of Y, how much of good X must she consume in order to attain the level of utility associated with 3 units of X and 4 units of Y? 

 

A. x=1

 

B. x=2

 

C. x=3

 

D. x=4

 

E. x=5

 

F. x=6

 

 

Answer 1

U = x^0.5y^0.5 = √xy

U(3,4) = √(3*4)

if U(a,2) = U(3,4) = √(3*4)

then √a*2 = √3*4

a = 6

or choice F