Question: Sally consumes two goods, X and Y. Her utility function is given by the expression U = 6X^2Y. The current market price for X is
Sally consumes two goods, X and Y. Her utility function is given by the expression U = 6X^2Y. The current market price for X is $5, while the market price for Y is $10. Sally's current income is $1500. Determine the X, Y combination which maximizes Sallys utility, given her budget constraint. I've derived the budget constraint equation of Y = 150 - 0.5X, but I'm not sure how to get the correct combination from the equation. A step by step explanation would be helpful!
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