A consumer derives his utility from two goods, the amounts of which are x and y, according to the utility function U = 2 ln x + In y. The price of x is $2 while that of y is $4. The consumer spends a total of $48 on the two goods. Find the maximum utility to this consumer. Prove that this utility is maximum.
A consumer derives his utility from two goods, the amounts of which are x and y, according to the utility function U = 2 ln x + In y. The price of x is $2 while that of y is $4. The consumer spends a total of $48 on the two goods. Find the maximum utility to this consumer. Prove that this utility is maximum.
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 1WNG
Related questions
Question
![A consumer derives his utility from two goods, the amounts of which are x and Y, according to the utility function U = 2 ln x + ln y. The price of x is
$2 while that of y is $4. The consumer spends a total of $48 on the two goods. Find the maximum utility to this consumer. Prove that this utility is
maximum.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd0a8184b-7207-48b7-81e2-a65167cb06c6%2F7349ef18-6c67-485d-a99f-ad01a9fba541%2Fefxqc88_processed.png&w=3840&q=75)
Transcribed Image Text:A consumer derives his utility from two goods, the amounts of which are x and Y, according to the utility function U = 2 ln x + ln y. The price of x is
$2 while that of y is $4. The consumer spends a total of $48 on the two goods. Find the maximum utility to this consumer. Prove that this utility is
maximum.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 8 steps with 6 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Microeconomics](https://www.bartleby.com/isbn_cover_images/9781337617406/9781337617406_smallCoverImage.gif)
![Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
![Microeconomics](https://www.bartleby.com/isbn_cover_images/9781337617406/9781337617406_smallCoverImage.gif)
![Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
![Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613040/9781337613040_smallCoverImage.gif)
![Micro Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613064/9781337613064_smallCoverImage.gif)
![Exploring Economics](https://www.bartleby.com/isbn_cover_images/9781544336329/9781544336329_smallCoverImage.jpg)
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc