Question

The consumer's budget constraint is $6 = 0.50g + p, where g is packs of gum and p is bags of pretzels. the marginal utility of pretzels is mup = g0.5, and the marginal utility of gum is mug = 0.5g–0.5p. the consumer's utility function is u = g0.5p. the utility-maximizing bundle consists of _____ packs of gum and _____ bags of pretzels.

Answer 1

Answer:

The answer is 4 packs of gum and 4 sacks of pretzels .

Explanation:

A purchaser dependably attempts to expand his fulfillment. Be that as it may, in this interest, he is hampered by his restricted cash wage, i.e., spending plan. A spending line is characterized as the available mixes of two products, given the costs of every great and shopper's wage. Along these lines the spending imperative depicts the diverse measure of two wares that a shopper can bear.  Expect that a buyer has a settled cash salary, M, to buy two merchandise, X and Y whose costs are PX and PY, individually. Likewise accept that PX and PY are settled.