1. Suppose that the total utility function of a consumer is given by TU(x,y) = 6XY, and the prices of X and Y are 1 birr and 2 birr per unit, respectively. If the income of the consumer is birr 600 birr and if he/she spends all of his/her income on the consumption of commodities of X and Y, find the optimum amount of X and Y that the consumer will consume at equilibrium.
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Expert's answer
2020-01-24T09:46:51-0500
TU(x,y)=6XY, prices are Px= 1birr and Py=2birr and income =600birr
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