Consider well-behaved preferences represented by a utility function u = x 13 y 23. The budget...

 

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Consider well-behaved preferences represented by a utility function u = x 13 y 23. The budget constraint is x + 3ys 60. 1.1) Find the bundle (x, y) that maximizes the utility function. 1.2) Find the fraction of the budget spent on good x, i.e., x+ 60. 1.3) Find the fraction of the budget spent on good y, i.e., 3y+ 60. Consider well-behaved preferences represented by a utility function u = x 13 y 23. The budget constraint is x + 3ys 60. 1.1) Find the bundle (x, y) that maximizes the utility function. 1.2) Find the fraction of the budget spent on good x, i.e., x+ 60. 1.3) Find the fraction of the budget spent on good y, i.e., 3y+ 60.

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