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Simona has a utility functionU (x, y) =xy, the price of apples, px, is $1,and the price of bananas,py, is $2. If Simona's income were
Simona has a utility functionU (x, y) =xy, the price of apples, px, is $1,and the price of bananas,py, is $2. If Simona's income were $200, how many units of apples and bananas would she consume if she chose the bundle that maximized her utility subject to her budget constraint? Show your workings leading to your proposed solution; and give a graphical representation to illustrate how the optimal consumption bundle can be derived
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