Answered: Matilda’s utility function is U=X2+4Z.…

Matilda’s utility function is U=X2+4Z. The price of X is px=$10, price of Z is pz=$5 and her income is Y=$150. What is her optimal consumption bundle of goods X and Z?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 6QP

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Question

Matilda’s utility function is U=X²+4Z. The price of X is px=$10, price of Z is pz=$5 and her income is Y=$150. What is her optimal consumption bundle of goods X and Z?

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