Calculate chen optimal consumption bundle

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Chen's preference relation is represented by a utility function u(x1,x2) := (2/3)lnx1 + x2 for any nonnegative consumption bundle (x1,x2). The price of good 1 is $3 and the price of good 2 is $9. Denote m for the amount of income given to Chen. Write down the equation corresponding to Chen's MRS condition. Write down the equation corresponding to Chen's budget line. Calculate Chen's optimal consumption bundle when Chen's income is $30.

Reference no: EM132482520

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