Suppose that Tom has a utility function for two goods,X and Y, is U(X,Y)=4X.5+Y
The price of X is $10 per unit and the price of Y is $5 per unit. Suppose that the Tom has $200 to spend.
A) Solve Tom's constrained optimization problem (i.e. what is his optimal bundle?).
B) What is his level of utility at the optimal bundle?