Question

4. There are two types of individuals. 10 individuals (type A) have the utility function U=x2/3y1/3 and the other 10 (type B) have the utility function U=x1/3y2/3. Further suppose that income for both type A and B individuals is 30, price of good x is 2 and the price of good y is 1. What is the quantity demanded for good y?

a. 200

b. 300

c. 400

d. 500

e. 600

Answer 1

b. 300