Question: 2. A consumer's utility function is given as U(X,Y)=3X+3Y where X and Y represent the quantities of the two goods consumed. Assume that consumer's income

2. A consumer's utility function is given as U(X,Y)=3X+3Y where X and Y represent the quantities of the two goods consumed. Assume that consumer's income is 1200 , the unit price of good X is 4 TL and the unit price of the good Y is 3 TL. a. Graph the consumer's budget constraint. b. Refer to the consumer's utility function. What type of relationship is implied for good X and Y ? c. On the same graph used for part a, plot the consumer's indifference curve that corresponds to the highest level of utility she can attain. Indicate the utility-maximizing consumption combination on the graph
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
