Abby's Utility Function Is Given by U = X²Y²

question 92

Essay

Abby's utility function is given by U = X²Y². For this utility function, MU_x = 2XY² and MU_y = 2X²Y. If good X costs $10 and good Y costs $5, what share of Abby's utility-maximizing bundle is made up of good X?

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Definitions:

Osmoregulation

The process by which organisms maintain the balance of water and electrolytes in their bodies to sustain life.

Marine Invertebrate

Organisms without a backbone living in marine environments.

Freshwater

Water that contains minimal amounts of dissolved salts, found in rivers, lakes, streams, and groundwater, essential for drinking, agriculture, and habitat for many organisms.

Buoyancy

The upward force exerted by a fluid that opposes the weight of an object immersed in it, enabling the object to float or to seem lighter.