Justin has the utility function U = xy, with the marginal utilities MUx = y and MUy

Question:

Justin has the utility function U = xy, with the marginal utilities MUx = y and MUy = x. The price of x is 2, the price of y is py, and his income is 40. When he maximizes utility subject to his budget constraint, he purchases 5 units of y. What must be the price of y and the amount of x consumed?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

Question Posted: