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Question 4 Suppose that the consumer's utility maximization problem is given by: max (m: + by subject to 1953.1: l pyy = m, with :c
Question 4 Suppose that the consumer's utility maximization problem is given by: max (m: + by subject to 1953.1: l pyy = m, with :c 2 0 and y may 20. Suppose that equal quantities of butter and margarine are perfectly substitutable. Butter costs $2 per stick and margarine costs $1 per stick and the consumer has 20 dollars. 4-1 If x denotes one stick of margarine and y denotes one stick of butter, what are the values of a and b? For the rest of the question, let X denote one stick of margarine and y denote one stick of butter
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