What two mathematical conditions should be satisfied

Reference no: EM133341754

Question: A consumer wants to choose an optimal consumption bundle of good x and good y.
a.) What two mathematical conditions should be satisfied at this optimal bundle? (Write the equations and explain.)
b.) Find the optimal bundle (x∗, y∗) when I = 40, Px = 20, Py = 20, M Ux = 1x , and M Uy = 1y .
c.) Find the optimal bundle (x∗, y∗) when I = 40, M Ux = 2x , M Uy = 2y , and where Px and Py are unknown prices.

Reference no: EM133341754

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