A consumer derives utility from good A and B according to the following utility function: U(A,B) = A2/5 B 3/5 . The price of good A is $20 while good B is priced $10. The consumer’s budget is $200. What is the optimal bundle for the consumer?

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 11SQ
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A consumer derives utility from good A and B according to the following utility function:
U(A,B) = A2/5 B
3/5
. The price of good A is $20 while good B is priced $10. The consumer’s budget is

$200. What is the optimal bundle for the consumer?

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