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Mathematics, 18.05.2020 22:57, g0606997
An individual consumes products X and Y and spends $36 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
a. Express the budget equation mathematically by plugging in the given information. Use capital letters and a single space between operators.
b. Determine the values of X and Y that will maximize utility.
c. Determine the total utility that will be generated per unit of time for this individual. (no decimals)
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Answers: 3
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