Question

Given utility function U= where PX = 12 Birr, Birr, PY = 4 Birr and the income of the consumer is M=240 birr A. Find the utility maximizing combinations of X and Y.

Answer 1

Answer:

if the consumer consume 19 unit of px equal to 12 into 19 228 and 3 units of py it equal to to 12 so it consume 240 and get maximum satisfaction