Solution:
Marginal utility is not given, so for good x it will be MUx, for good y MUy.
pxMUx=pyMUy If px=2, py=1
2MUx=1MUy
MUx=2MUy
I=pxqx+pyqy I=9, Px=x. Py=y
2x+y=9 x=1.y=7;x=2,y=5;x=3,y=3;x=4,y=1
These are the possible options for acquiring x and y. Knowing the marginal utility, you can choose the most profitable option.
I=9; x=1; y=1
MUx=MUy
x+y=9 x=1,y=8;x=2,y=7;x=3,y=6;x=4,y=5;x=5,y=4;x=6,y=3;y=7.y=2;x=8.y=1
Comments
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