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Make use of the following values to answer the question below. Utility function: 6XY Price of X = 20 Price of Y = 5 Income
Make use of the following values to answer the question below. Utility function: 6XY Price of X = 20 Price of Y = 5 Income = 1400 2.1 Write down the budget constraint. 2.2 Calculate the optimal number of X and Y to maximise utility. 2.3 Calculate the total utility that the consumer will derive given your answer above in question 2.2 2.4 Calculate the MRS at optimal utility level, assuming product X is labelled on the x- axis. 2.5 Plot all the values on an indifference curve analysis
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