Anyone here take basic university economics?, income expansion pathway

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  • Myst
    Confirmed User
    • Feb 2004
    • 4708
    #1

    Anyone here take basic university economics?, income expansion pathway

    Michael derives hsi utility from two goods - cake (C) 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?

    What playa knows this - its probably pretty simple, I took econ as a filler class
    ICQ: 298-523-037
    Tags: None
    • Kimmykim
      bitchslapping zebras!!!!!
      • Jun 2001
      • 16015
      #2
      Wow, I majored in economics the second time I was in college and I swear I don't recognize the word himcome. And I'm a little fuzzy on what the utility refers to as well...

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        • woj
          <&(©¿©)&>
          • Jul 2002
          • 47882
          #3
          Where did you find that question? It doesn't really make sense that U would be C*D, but purely from mathematical point of view U will be max when C=D=60 if that helps you in any way...
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