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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
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.
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