An individual derives utility from consuming goods x and y, Ask an Expert

Economics

An individual derives utility from consuming goods X and Y according to the following estimated utility function

U = 12X^2/3 Y^¼

X and Y are quantities (units) of the two goods

The individual has ksh 2400 to spend on goods X and Y whose prices per unit are ksh 6 and Ksh 12 respectively,

a) Find the individual's marginal utilities with respect to both goods

b) Determine the quantities of each commodity he/she should buy so as to maximize his utility

c) His/her maximum attainable utility level

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9526948

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