What type of preferences does this utility function

Reference no: EM133706713

Question: Assume Maria's preferences for two goods, can be illustrated by the following utility function U(X, Y) = 3X + 4Y. Assume PX = 2: PY = 5 and she has a budget of £30 to spend on the two goods. a. What type of preferences does this utility function represent? Use the numbers in the utility function to explain your answer. b. Calculate the consumption bundle that will maximise Maria's utility (You must clearly show all working and explain the economic intuition to receive the marks for this question). Illustrate and explain your answers on a well labelled indifference curve diagram and calculate utility at the optimal point.

Reference no: EM133706713

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