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Mathew has the utility function U = √XY (where Y represents bananas and X represents ham burgers), income of $20, and is deciding how to allocate that income between bananas and ham Burgers. Ham Burgers cost $1.00 and bananas cost $1.25 each.
a) Matthew's utility function implies that the marginal utility of bananas is 0.5 √X/Y and the marginal utility of ham burgers is 0.5 √Y/X. How many bananas will Matthew buy? How many ham burgers will he buy?
Why do you think many countries restrict the promotional use of sweepstakes and other games of chance? Please provide answer in paragraph with examples.
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