Phil's utility function is U = XY, where MUX = Y and MUY = X. In Lancaster, Pennsylvania, Phil's income would equal $500, and the prices of good X and good Y are $5 and $5, respectively. In Washington, D.C., Phil's income would equal $800, and the prices of good X and good Y are $8 and $10, respectively. Where should Phil live? Show your work.
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Y/X = 5/5 (...
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