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For the utility function U(x, z) = x + 2, derive expressions for the optimal levels of good x and good 2 as functions of
For the utility function U(x, z) = x" + 2", derive expressions for the optimal levels of good x and good 2 as functions of the price of good x, px, the price of good 2, p2, and income, Y. For simplicity, assume that the price of good 2 is normalized to be one: pZ = 1. 1 1-p' In your answer, use 1 for "p2" and the relationship a = The optimal value of good 2 is z = B. (Property format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can be created with the _ character.)
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