Question: Q) Suppose that the utility function of a consumer is U = 100 X 3/5 Y 2/5 and M(Income) = 200, Px= Rs.2, Py= Rs.5.

Q) Suppose that the utility function of a consumer is

U = 100 X^3/5Y^2/5

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.

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