Question: Question 4. Charlie has utility function U(X1, X2)= X1X2 over two goods. This is a special case of the Cobb-Douglas utility function. Suppose the price

Question 4. Charlie has utility function U(X1, X2)= X1X2 over two

goods. This is a special case of the Cobb-Douglas utility function. Suppose

Question 4. Charlie has utility function U(X1, X2)= X1X2 over two goods. This is a special case of the Cobb-Douglas utility function. Suppose the price of good 1 is 1, the price of good 2 is 2, the income is 40. Find the optimal consumption bundle. Plot the indifference curve, budget line and show optimal choice on the graph

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