Question: 1 suppose a consumers choice set consists of 2 goods...
1) Suppose a consumer's choice set consists of 2 goods. Can they both be superior goods at the same level of income? Why or why not?
2) Suppose a consumer's utility function is U=(x^.5)(y^.5) and the consumer has $100 to spend. Let Px=10 and Py=5. How much of x and y will be purchased?