Assume a consumer with the utility function defined over two goods X and Y given by the formula U = 5X-X2 + XY+4Y -0.5Y2. The consumer has an income of 80 money units and the prices of X and Y are respectively Px = 1 and Py = 1.5. What quantities of X and Y maximise utility?

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Assume a consumer with the utility function defined over two goods X and Y given by the formula U = 5X-X2 + XY+4Y-0.5Y2. The consumer has an income of 80 money
units and the prices of X and Y are respectively Px = 1 and Py = 1.5. What quantities of X and Y maximise utility?
Transcribed Image Text:Assume a consumer with the utility function defined over two goods X and Y given by the formula U = 5X-X2 + XY+4Y-0.5Y2. The consumer has an income of 80 money units and the prices of X and Y are respectively Px = 1 and Py = 1.5. What quantities of X and Y maximise utility?
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