Q) Suppose that the utility function of a consumer is U = 100 X 3/5 Y 2/5
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Question:
Q) Suppose that the utility function of a consumer is
U = 100 X3/5Y2/5
and
M(Income) = 200, Px= Rs.2, Py= Rs.5.
Determine the quantities of X & Y that the consumer should purchase in order to maximize his utility using lagrangian method. Also interpret the value of λ.
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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