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.
3X1+2X2=60,3X_1+2X_2=60,3X1+2X2=60,
X1=X2,X_1=X_2,X1=X2,
3X1+2X1=60,3X_1+2X_1=60,3X1+2X1=60,
5X1=60,5X_1=60,5X1=60,
X1=X2=12.X_1=X_2=12.X1=X2=12.
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