The utility that Divesh obtains by consuming X and Y is given by U(X,Y)=5X2/3Y1/3. The price of X is $12, the price of Y is $1, and income is $48. Which two equations characterize Divesh's optimal consumption bundle? A) 4X+48Y=48 (1/3)Y=(2/3)X B) 12X+Y=48 (1/3)Y (2/3)X
The utility that Divesh obtains by consuming X and Y is given by U(X,Y)=5X2/3Y1/3. The price of X is $12, the price of Y is $1, and income is $48. Which two equations characterize Divesh's optimal consumption bundle? A) 4X+48Y=48 (1/3)Y=(2/3)X B) 12X+Y=48 (1/3)Y (2/3)X
Chapter1: Making Economics Decisions
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Transcribed Image Text:19) The utility that Divesh obtains by consuming X and Y is given by U(X,Y)=5X2/3Y1/3. The price of
X is $12, the price of Y is $1, and income is $48. Which two equations characterize Divesh's
optimal consumption bundle?
A) 4X+48Y=48
(1/3)Y=(2/3)X
B) 12X+Y=48
(1/3)Y=(2/3)X
C) 12X+Y=48
X=2Y
D) 12X+Y=48
Y=6X
E) 4X+48Y=48
X=2Y
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