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corie corie
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6 years ago
An individual consumes products X and Y and spends $25 per time period.  The prices of the two goods are $3 per unit for X and $2 per unit for Y.  The consumer in this case has a utility function expressed as: 
   U(X,Y) = .5XY   MUX = .5Y   MUY = .5X.

a.   Express the budget equation mathematically.
b.   Determine the values of X and Y that will maximize utility in the consumption of X and Y.
c.   Determine the total utility that will be generated per unit of time for this individual.
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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oracledarrenoracledarren
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6 years ago
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#2
3 years ago
YAY! Thanks for explanation
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