Answer to Question #333136 in Microeconomics for Karthika

Question #333136

Suppose, you have a utility function u(X1,X2) = X1 X2. Your budget constraint is 3X1+2X2= 60.




X1 and X2 are the amount of consumption of the two goods. Find the equilibrium level of utility.

1
Expert's answer
2022-04-24T17:24:30-0400

3X1+2X2=60,3X_1+2X_2=60,

X1=X2,X_1=X_2,

3X1+2X1=60,3X_1+2X_1=60,

5X1=60,5X_1=60,

X1=X2=12.X_1=X_2=12.


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