Question: Please derive the demand functions for the utility function U=a ( x) + b ( z) + xz. Then given a=2, b=3, price of x=1,
Please derive the demand functions for the utility function U=a(x) + b(z) + xz. Then given a=2, b=3, price of x=1, price of z=2, and Y =50 find optimal values of x and z.
I believe the utility function is: U=2(x) +3(z) +xz
and budget constraint is: 50 = 1(x) + 2(z)
I tried the Lagrangian but I cannot get x or z alone
thank you for your time
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