Can someone assist me with this question please?
If utility function is U (X,Y) = 4X^(1/2) Y^(1/2) and the budget constraint is$150; price of X is $10/unit and price of Y is $5/unit; X and Y are in units.
a. Find the optimal bundle X and Y that the consumer should buy to maximize his utility.

Question

Can someone assist me with this question please?
If utility function is U (X,Y) = 4X^(1/2) Y^(1/2) and the budget constraint is$150; price of X is $10/unit and price of Y is $5/unit; X and Y are in units.	
a.	Find the optimal bundle X and Y that the consumer should buy to maximize his utility.

anonymous · Answer

Seti - how much mathmatics do you know?  You could set up a constrained maximization problem with 150=10X + 5Y as the constraint and the utility function as the function to be maximized.  Try going to Wolfram  Alpha at type in "maximize 4X^1/2Y^1/2 subject to 150 = 10X+5Y.  If you play around with the price of X and see how the optimal X changes, you can graph the demand for X.