Assignment:
Two consumers, Mamoon and Kader, consume only two goods, good 1 and good 2, with the quantities of each consumed denoted by x1 and x2 respectively. The price of x1 is $6/unit, and the price of x2 is $5/unit. The consumer has a fixed income of $64.
Mamoon has a utility function: U(x1,x2 )=2x1^3 x2^5?
Kader's utility function is: U(x1,x2 )=x1+2x2
Q1. Solve Kader's utility maximization problem.
Q2. Show the on a diagram with the horizontal axis represents x1 and the vertical axis represents x2 the way to find the optimal consumption bundle of Kader graphically, label the optimal bundle.