anonymous
  • anonymous
Can someone assist me with this question please? If utility function is U (X,Y) = 4X^(1/2) Y^(1/2) and the budget constraint is$150; price of X is $10/unit and price of Y is $5/unit; X and Y are in units. a. Find the optimal bundle X and Y that the consumer should buy to maximize his utility.
Economics - Financial Markets
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
chestercat
  • chestercat
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
Seti - how much mathmatics do you know? You could set up a constrained maximization problem with 150=10X + 5Y as the constraint and the utility function as the function to be maximized. Try going to Wolfram Alpha at type in "maximize 4X^1/2Y^1/2 subject to 150 = 10X+5Y. If you play around with the price of X and see how the optimal X changes, you can graph the demand for X.

Looking for something else?

Not the answer you are looking for? Search for more explanations.