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Solving the utility function also finding indifference curve and the budget line equations.

Tom have only $60, and he want to spend it all on clothing (X) and food (Y), Price of clothing is $4, and Price of food is $2. Tom's Utility function looks like the following.

U = U(X,Y) =XY +2X

PX= $4 , PY= $2, and I = $60.

Find the indifference curve and the budget line equations?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917845

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