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Bunter derives utility from consuming two goods. Let xi denote the quantity if good i consumed. His preferences over bundles (x1; x2) are represented by
Bunter derives utility from consuming two goods. Let xi denote the quantity if good i consumed.
His preferences over bundles (x1; x2) are represented by the following utility function:
U(x1; x2) = 3 ln x1 + ln x2
where ln stands for the natural logarithm.
The price per unit of good 1 is $5 and the price per unit of good 2 is $2 and Bunter's income is $100.
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