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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

P_X= $4 , P_Y= $2, and I = $60.

Find the optimal values of both goods (Y*,X*) and Utility?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9162814

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