Figure 7.1
-Assume that the budget constraint in Figure 7.1 panel A is: P_EE +P_AA = I,where I is total income and _PE is the price of education and P_A is the price of all other goods.If U(E,A)= A+E,P_E = 2,P_A = 1,and I = 10 what is the quantity of education and all other goods consumed?

Question

Figure 7.1 -Assume that the budget constraint in Figure 7.1 panel A is: P<sub>E</sub>E +P<sub>A</sub>A = I,where I is total income and <sub>PE</sub> is the price of education and P<sub>A</sub> is the price of all other goods.If U(E,A)= A+E,P<sub>E</sub> = 2,P<sub>A</sub> = 1,and I = 10 what is the quantity of education and all other goods consumed?

Quizplus · Accepted Answer

The Answer of Figure 7.1 -Assume that the budget constraint in Figure 7.1 panel A is: P_EE +P_AA = I,where I is total income and _PE is the price of education and P_A is the price of all other goods.If U(E,A)= A+E,P_E = 2,P_A = 1,and I = 10 what is the quantity of education and all other goods consumed?