Answer to Question #281542 in Economics for adsdd

Question

A consumer spends all her income of £120 on the two goods A and B. Good A costs £10 a unit and good B costs £15. Set up a constrained optimization problem to find the combination of A and B that the consumer purchase to maximize utility where the utility function is 𝑈 = 4𝐴0.5𝐵0.5 ?

Answer 1

Dear adsdd, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order