Consumer Behaviour

Consider two goods, X and Y, where the price of X is $4 and the price of Y is $2.Suppose we have three consumers, (Larry, Curly, and Moe), each with an income of $100 to spend on goods X and Y.

For each of the consumer's utility functions below, derive the optimal bundle of X and Y and graphically illustrate your solution.

(a)Larry:U_L = X Y(4 marks)

(b)Curly:U_C = 2X + 4Y(5 marks)

(c)Moe:U_M = X² + Y²(6 marks)