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Kate has a utility function U(x,y) = 10 x + y The price of good x is $5, and the price of good y is
Kate has a utility function
U(x,y) = 10x + y
The price of good x is $5,
and the price of good y is $20.
If Kate's income is $500, how
many units of good x would she
consume if she chose the bundle
that maximizes her utility subject
to her budget constraint?
Also, why does it become U(x,y)= 10x^1/2+10y?
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