Noah Doe consumes two goods, X and Y. Noah has a utility function given by the...

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Noah Doe consumes two goods, X and Y. Noah has a utility function given by the expression: U(X,Y) = x2y3 The current prices o (b) Calculate the optimal quantities of X and Y that Noah should choose, given his budget constraint. (16 marks)

business economics

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Answer 1

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U(x, y) = x²y3 Py = 4 Py = 3 Me Income) = 100 the a) Budger constraint is form fax + ly Y = M substituting values, we@get, 4x

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