Matematik
økonomi
25. oktober 2011 af
sashii
The consumer A uses her entire income on C and F. The following utility function illustrates her preferences, where Qc and Qf indicate the quantities consumes:
U=Qc*Qf
Income = $4899
Pc=$8
Pf=12,50
Find the optimum consumption
I don't know whether I'm doing it correct og wrong: 12,50x + 8y = 4800
If she spends all her income on C she can afford: 4800/8=600 and for F: 4800/12,50=384. What do I do then? Do we say 600*384=230.400
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