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4. (8 marks) Suppose the utility function of Joe is U = 50X0.6Y 0.4. The unit price of Good X is $10 while the unit

4. (8 marks)

Suppose the utility function of Joe is U = 50X0.6Y 0.4. The unit price of Good X is $10 while the unit price of Good Y is $20. Joe has a budget of $1,200 to be spent on Good X and Good Y.

Find the optimal consumption bundle of Joe. Show your calculation.

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