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Form 7 Serious IllnessUtility

Form 7 Serious IllnessUtility

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Instructions and help about Form 7 Serious IllnessUtility

let us solve a question on utility problem this question was asked by a brother on telegram channel of economics the question is like this suppose the consumer has following utility function u x y is equal to x to the power 1 upon 3 into y to the power 1 upon 2 where x and y denote the two goodness what would be the share of income spent on good x and good y respectively so we have to find out the income share on both the goods okay so options are this option means that consumer is spending three fifth of his income on good x and two fifth on good y and similarly we have one third on x one third uh one half on y and these are the given options okay so we need to see which of these options is correct okay so what we are being given here we are being given the utility function u let me write it only u here okay for the sake of simplicity i could have written as x y it is being assumed that it is the function of x and y here so utility function is x to the power 1 upon 3 y to the power 1

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