Originally Posted by

**413** Paul eats healthy; he spends his entire monthly lunch allowance of $288 on organic arugula salad (X) and seaweed (Y). His utility function is U = 2XY. Both X and Y sells for $6 per unit.

(a) Calculate Paul’s utility-maximizing purchases of X and Y.

(b) How will his utility change if she who must be obeyed (his wife) reduces his monthly allowance by $2.00?

(c) As a result of everybody jumping on the organic bandwagon, the price of organic arugula increases to $8.64. By how much must Paul’s wife increase his monthly lunch allowance to enable him to maintain his

initial level of utility as in part (a) above?

a) i got X=Y=24

b) Lagrangian multiplier i got is 8, so utility changed by 16

c) I don't know where to start for this question.