1. Joseph's utility is given by: U=X² + y² (Note that this is the equation of a circle with the center at the origin). The marginal utilities are MUX-2X and MUy=2Y. Assume that Px=10, Py=20 and m=200. Find the optimal amounts of X and Y. Show your answer on a graph.

Exploring Economics
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ISBN:9781544336329
Author:Robert L. Sexton
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Chapter10: Consumer Choice Theory
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1. Joseph's utility is given by:
U=X² + y²
(Note that this is the equation of a circle with the center at the origin). The marginal utilities are
MUX-2X and MUy-2Y. Assume that Px=10, Py=20 and m=200. Find the optimal amounts of X and Y.
Show your answer on a graph.
Transcribed Image Text:1. Joseph's utility is given by: U=X² + y² (Note that this is the equation of a circle with the center at the origin). The marginal utilities are MUX-2X and MUy-2Y. Assume that Px=10, Py=20 and m=200. Find the optimal amounts of X and Y. Show your answer on a graph.
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