Consider the utility of a consumer consuming two goods, the quantities of which are x and y. His total utility is given by the function U (x, y) = 7+24x − 3x² + 8y-2y² i) Find the levels of x and y that maximizes utility. ii) Using the second-order condition, determine whether the utility id maximized

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Consider the utility of a consumer consuming two goods, the quantities of which
are x and y. His total utility is given by the function
U (x, y) = 7+24x - 3x² + 8y - 2y²
i)
Find the levels of x and y that maximizes utility.
ii)
Using the second-order condition, determine whether the utility id
maximized
Transcribed Image Text:Consider the utility of a consumer consuming two goods, the quantities of which are x and y. His total utility is given by the function U (x, y) = 7+24x - 3x² + 8y - 2y² i) Find the levels of x and y that maximizes utility. ii) Using the second-order condition, determine whether the utility id maximized
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