Ali has a utility function u(x, y) 5lnx + 2lny. Consider that the price of x is 100 TL, the price of y is 40 TL and monthly income is 1400 TL. Mehmet uses all of his income each month to purchase x and y. Solve the constraint optimization problem and find x*. %3D

Ali has a utility function u(x, y) 5lnx + 2lny. Consider that the price of x is 100 TL, the price of y is 40 TL and monthly income is 1400 TL. Mehmet uses all of his income each month to purchase x and y. Solve the constraint optimization problem and find x*. %3D

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 13PAE

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Ali has a utility function u(x, y) = 5lnx + 2lny. Consider that the price of x is 100 TL. the price
of y is 40 TL and monthly income is 1400 TL. Mehmet uses all of his income each month to
purchase x and y. Solve the constraint optimization problem and find x*.
Answer:

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