A consumer utility function is U=(x1,x2) Where X1 is the quantity of good 1 that is bought, X2 is the quantity of good 2 that is bought. The price of good 1 is $10 and the price for good 2 is $2. If the consumer's income is $100 what will the consumer's optimal utility level be? b. Using Lagrange multilplier method. optimise the utility function x0.25 y0.25 subject to the budget constraint 24=x/10+y

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
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A consumer utility function is U=(x1,x2) Where X1 is the quantity of good 1 that is bought, X2 is the quantity of good 2 that is bought. The price of good 1 is $10 and the price for good 2 is $2. If the consumer's income is $100 what will the consumer's optimal utility level be?

b. Using Lagrange multilplier method. optimise the utility function x0.25 y0.25 subject to the budget constraint 24=x/10+y

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