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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?

Question

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?

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Step 1

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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Tagged in

Business

Economics

Consumer demand theory

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