he Calculus of Utility Maximization and Expenditure Minimization - End of Appendix Problem appose that there are two goods, X and Y. The price of X is $2 per unit, and the price of Y is $1 per unit. There are two onsumers, A and B. The utility functions for the consumers are UA(X,Y)= Xosyas UB(X,Y)= X08y0.2 Consumer A has an income of $100, and Consumer B has an income of $300. Using Lagrangians, solve for the optimal bundles of goods X and Y for both consumers A and B. a. The optimal bundle for consumer A is X=25 and Y* = 50 b. The optimal bundle for consumer B is X = 120 and Y* = 60
he Calculus of Utility Maximization and Expenditure Minimization - End of Appendix Problem appose that there are two goods, X and Y. The price of X is $2 per unit, and the price of Y is $1 per unit. There are two onsumers, A and B. The utility functions for the consumers are UA(X,Y)= Xosyas UB(X,Y)= X08y0.2 Consumer A has an income of $100, and Consumer B has an income of $300. Using Lagrangians, solve for the optimal bundles of goods X and Y for both consumers A and B. a. The optimal bundle for consumer A is X=25 and Y* = 50 b. The optimal bundle for consumer B is X = 120 and Y* = 60
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![he Calculus of Utility Maximization and Expenditure Minimization
-End of Appendix Problem
uppose that there are two goods, X and Y. The price of X is $2 per unit, and the price of Y is $1 per unit. There are two
onsumers, A and B. The utility functions for the consumers are
UA(X,Y)= X05.05
UB(X,Y)= X0.8y0.2
Consumer A has an income of $100, and Consumer B has an income of $300.
Using Lagrangians, solve for the optimal bundles of goods X and Y for both consumers A and B.
a. The optimal bundle for consumer A is
X = 25 and Y* = 50
-
b. The optimal bundle for consumer B is
X = 120 and Y* = 60](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff072a7d-17de-4b51-9c55-f2704da35c92%2Fc173aede-a3c4-44d6-91ef-7ab1c15cc00d%2F5wxhh7_processed.png&w=3840&q=75)
Transcribed Image Text:he Calculus of Utility Maximization and Expenditure Minimization
-End of Appendix Problem
uppose that there are two goods, X and Y. The price of X is $2 per unit, and the price of Y is $1 per unit. There are two
onsumers, A and B. The utility functions for the consumers are
UA(X,Y)= X05.05
UB(X,Y)= X0.8y0.2
Consumer A has an income of $100, and Consumer B has an income of $300.
Using Lagrangians, solve for the optimal bundles of goods X and Y for both consumers A and B.
a. The optimal bundle for consumer A is
X = 25 and Y* = 50
-
b. The optimal bundle for consumer B is
X = 120 and Y* = 60
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