Question: Utility function is u(x.x) =x^2y and a consumer has |= $300 budget and he has preferences on media service provider such as Amazon, Netflix,

Utility function is u(x.x) =x^2y and a consumer has |= $300 budget

Utility function is u(x.x) =x^2y and a consumer has |= $300 budget and he has preferences on media service provider such as Amazon, Netflix, x, and the composite good, denoted as y. Assume that Py-$1 and it can be considered as the saved dollars for any other use. If she is not prime member of the service each show costs Px=$10, but if she is a prime member, then Px=$4. Prime membership costs $120. denoted as 1) Draw her feasible budget. 2) Find the optimal bundle for non-prime membership and its optimal utility. 3) Find the optimal bundle for prime membership and its optimal utility

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