Determing the constract budget equations

Reference no: EM133564441

Assignment:

A consumer has birr 600 to spend on two commodities X and Y respectively,the first of which costs birr 20 per unit and the second birr 30 per unit. Suppose that utility derived by the comsumer from X units of the first commodities and Y units of the second commodities is given as U(X,Y)=10x a power of 0.6 + Y the power of 0.4. Determine the following.

A. Constract budget equations.

B. How many units of each commodities (the Values of X,Y) should the consumer by to maximaze utility?

C. Find total Utility

D. Show the comsumer equilibrium condition graphically.

Reference no: EM133564441

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