Q.

1 A consumer divides Rs90 to be divided between two commodities X and Y, and

suppose the unit price of Y is fixed at Re 0.20. What will be his demand equation for
X. If his utility function is.U = log Qx + 2 log Qy.
Q2. A consumer has a monthly budget of Rs4000. He spends all his income on two
goods A & B. Price of A and B are Rs 2 & Rs 4 respectively. His utility function
is U = 3 log A + 9 log B. Find the optimum combination of A & B for the
consumer.
Q3. Given : Monthly Budget = 1000, Px = Rs10/Kg, Py = Rs 15/litre.
U = ( XY + X +Y). Find the optimum combination and the expenditure?
Q4. Given :
Monthly Budget = Rs100, Px = Rs3, Py = Rs4, U = X1.5Y. Find the optimum
allocation of expenditure ?
Q.5 For a consumer, Marginal Utilities of two goods consumed, A and B, are
MUA = 22-x
MUB = 21 2y
Where, x is the amount spent on product A, and y is the amount spent on B.
Assume that the consumer has only Rs.100 to spend on both products A and B,
if the price of B is half the price of A ?