Uxyx5y05 income m100 Price Px5 Py15 whats optimal consumptio

U(x,y)=x^(.5)*y^(0.5), income m=100, Price Px=5, Py=15, what\'s optimal consumption bundle??

MRS = MU_x/MU_y

MU_x = dU/dx = y^0.5/2*x^0.5

MU_y = dU/dy = x^0.5/2*y^0.5

MRS = y/x

MRS = P_x/P_y=1/3 so x =3y

Budget constraint = 5x + 15y = 100 substituting x=3y in budget constraint

15y+15y = 100 so y = 10/3 and x = 10

$U(x,y)=x^(.5)*y^(0.5), income m=100, Price Px=5, Py=15, what\'s optimal consumption bundle??SolutionMRS = MUx/MUy MUx = dU/dx = y^0.5/2*x^0.5 MUy = dU/dy = x^0.$

Uxyx5y05 income m100 Price Px5 Py15 whats optimal consumptio

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