vavopy Posted February 8, 2005 Share Posted February 8, 2005 Michael derives hsi utility from two goods - cake © and donuts (D. His utility is given by U = C*D, with MUc = D and MUd = C. He has himcome I = $120 and price of C, (Pc) = $1, and price of D (Pd) = $1 as well. What is Donalds income expansion path? What are utility maximizing C and D? Holding his himcome and Pd constant at their current values, what is Donald's demand curve for cake? Any kick in the right direction would be appreciated :) Link to comment Share on other sites More sharing options...
CAH Posted February 8, 2005 Share Posted February 8, 2005 :unsure: http://members.shaw.ca/h-chartrand/3.4.1.htm Link to comment Share on other sites More sharing options...
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