What is the best combination of agents daily consumption


Question:

An agent has a daily budget of $240 and her daily utility function is the consumption of two goods, X and Y:

U(X, Y) = X Y

If the price for good X (Px) is $8 and that for good Y (Py) is $10, what is the best combination of X and Y for the agent's daily consumption?

Solution Preview :

Prepared by a verified Expert
Microeconomics: What is the best combination of agents daily consumption
Reference No:- TGS02091644

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)