price of x is $1
price of y is $3
income is $90
how much of each good should be consumed in order to maximize utility
Follow Math Help Forum on Facebook and Google+
Utility is maximised when
so Substituting this into the B.C which is ,
So Y can be calculated using and substituting into the B.C, or solving MRS equal to the price ratio for X.
great respons on the issue. there are more math problmes that require variable results!
View Tag Cloud