Supposed a consumer utility function is written as: U=(2q1,q2) where q1 andq2 are commodites 1 and 2 respectively.let their respective price be given as:p1=#2, p2=#8 and income be given as: B=#240. Use the above data to :
a. Find the maximum values of q1 and q2 that the consumer consumed.
b. Show that the budget constraint is satisfied in the sense that all income will be spent.
c. Show that the equal marginal principle is fulfilled.
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As this is a topic that is above the level that we at Ask & Answer can provide help with, I would
encourage you to check with your teacher/professor for additional help. We encourage you to
come back if you need any help in the areas that we can assist in.
Regards