ISI 2004

Posted by Manvendra on May 10, 2012; 2:18pm
URL: http://discussion-forum.276.s1.nabble.com/ISI-2004-tp7546868.html

Hi,

In the question :

A consumer has Rs. 25 to spend on two goods x and y. The price
of good x is Rs. 3 and that of good y is Rs. 4. The continuously
differentiable utility function of the consumer is U (x, y) = 12x + 16y –x2
– y2 where x ≥ 0 and y ≥ 0


Can we treat it as a case of Perfect Substitutes ?


Thanks in advance..