Re: Discussion Problem_(14)

Posted by Sumit on May 25, 2013; 12:12pm
URL: http://discussion-forum.276.s1.nabble.com/Discussion-Problem-14-tp7581214p7581229.html

Hi Guys,
I'm also getting the M=200.
N my approach is as follow:
As we Know, P1/P2=MU1/MU2, n From Utility function At Point where Ms.X consumes x=15, Y=10 I'm getting MU1=2 n MU2=1..Thus we are getting P2=5...But I think there is something wrong with this..


I think correct approach as Devika mention...
 At optimal point 2x=y.....So, d(y)/d(x)=P1/p2
i.e dy/dx=2=p1/p2...P2=5...n M=200..