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Faisal consumes only bread (X) and butter (Y) and has the following utility function: U = u( x, y) = x*y Let his income be
Faisal consumes only bread (X) and butter (Y) and has the following utility function: U = u( x, y) = x*y Let his income be 180. Hint: His Marginal Rate of Substitution is given by MRS = y/x. He faces prices of px = $6 and py = $4 and consumes 10 units of each good. A) Does Faisal's utility function meet all the criteria that are required for preferences? B) Is faisal maximizing his utility? Should he consume more ofX or more of Y
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