Re: small doubt

Posted by knowpraveen on Jun 09, 2015; 2:06pm
URL: http://discussion-forum.276.s1.nabble.com/small-doubt-tp7597552p7597561.html

What's the utility function, btw? Is it U(x,y)=4x+y?

This could be solved by using the Lagrangean Optimization method by optimizing the utility functions with respect to the budget constraint and by proceeding to solve for x and y. The percentage change in the value of y gives you the result.