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.

Results 1 to 3 of 3

- Feb 11th 2010, 10:10 AM #1

- Joined
- Mar 2009
- Posts
- 84

- Feb 11th 2010, 02:48 PM #2

- Joined
- Mar 2009
- Posts
- 133

- Feb 13th 2010, 02:59 AM #3

- Joined
- Feb 2010
- Posts
- 3