Utility maximizing individual consuming two goods

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Reference no: EM131000494

Consider the utility function for a utility maximizing individual consuming two goods X and Y.

U (X,Y)= X²Y+15. This person pays 3 dollars for good X and 5 dollars for good Y with an income of 150 dollars. (5Y+3X <= 150) Budget constraint.

a. derive the marginal utility for good x. Ux

b. derive the marginal utility for good Y. Uy

c. find the marginal rate of substitution between x and y

d. find the amounts of good X and Y that maximizes this utility

e. compute the utility

Reference no: EM131000494

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