What type of function is the utility function expressed as u(x,y)=30lnx + y? Also, how would you go about deriving the demand for x and y in this function?
A utility function u (x, y) represents a consumer’s preferences. That is, a utility function provides a representative number for utility derived from every combination of x and y. This helps in ranking the available bundles of x and y and thus helps in representing consumer's preferences.
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