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Mathematics, 13.02.2021 03:00 hixonjennifer
Suppose that Santiago has a utility function for two goods, X and Y, is U(X, Y ) = 4X^.5 + Y (hint: this is an imperfect substitutes utility function). The price of X is $10 per unit and the price of Y is $5 per unit. Suppose that the Santiago has $200 to spend. Solve Santiago’s constrained optimization problem (i. e., what is his optimal bundle?). What is his level of utility at the optimal bundle?
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Suppose that Santiago has a utility function for two goods, X and Y, is U(X, Y ) = 4X^.5 + Y (hint:...
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