Assume an individual consumes three goods: food, clothing andautomobiles. Denote the quantities of these goods as Q1, Q2, Q3. the individual's utility functionis given by :
U(*) 5lnQ1 + 4lnQ2 +10 ln(1+Q3)The prices of the three goods are P1= 10, P2= 20, P3= 20000, and individuals total income is$60000.
Automobiles must be bought in discrete units, that isQ3 must be equal to 0,1,2.
Given these constraints, how will an individual allocate theirincome to maximize utility.