Elmers utility function is ux y minx y2 if the price of x


Elmer's utility function is U(xy) = min{xy2}. If the price of x is $10 and the price of y is $15 and if Elmer chooses to consume 4 units of y, what must his income be?

a. $220

b. $100

c. $320

d. There is not enough information to determine his income.

e. There is enough information to determine his income, but I have not seen previously a problem like this. So, the tools I have learnt in class cannot help me.

Can someone please explain to me how to reach the final answer?

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Basic Computer Science: Elmers utility function is ux y minx y2 if the price of x
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