Suppose an individualrsquos utility is expressed as, Ask an Expert

Economics

Suppose an individual’s utility is expressed as U=x^(1/2)y^(1/2)and their constraint is represented by the following: 2x+3y=B=100.

What level of x and y should the individual consume to maximize utility? What is utility at the optimal level of consumption?

What is the shadow price of relaxing the constraint 2x+3y 100 that is, having B=101 rather than B=100?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91421569

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