Intermediate Microeconomics Homework Help!
The consumer has an endowment (w1, w2) of goods X and Y. The consumer can buy and sell the two goods at Px and Py, respectively.
The utility function: U(x,y) = 10ln(x)+5ln(y)
Please answer Questions 1-3 in order.
1. What is the net demand for good X.
2. What values of Py will the consumer be a net demander of good Y?
3. Px=$12 and (w1,w2)=(10,15). What value of Py is the consumer's utility the lowest? Why?
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