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The price of A is $16 per unit and the price of B is $2 per unit and you will spend$128. How many units of A and B should you buy to maximize and to minimizeutility Uab?

Question
The price of A is $16 per unit and the price of B is $2 per unit and you will spend
$128. How many units of A and B should you buy to maximize and to minimize
utility Uab?
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The price of A is $16 per unit and the price of B is $2 per unit and you will spend $128. How many units of A and B should you buy to maximize and to minimize utility Uab?

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Step 1

It is given that the price of A is $16 per unit and the price of B is $2 per unit. The amount to spend is $128. Assume that the number of units of A and B are x and y, respectively.

Then, the equation can be formulated as

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Step 2

Here, the utility function is given as

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Step 3

Obtain the value of y and substitute y in...

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Math

Calculus

Derivative

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