Bob has an income i 1000 to spend on clothing and food


Bob has an income I = $1000 to spend on clothing and food. Letting y represent the number of units of food and x represent the number of units of clothing that he purchases, his utility function is given by:

U(x,y) = xy3

Assume that Px = Py = 1.

a) Find the optimal basket of food and clothing that Bob purchases.

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Microeconomics: Bob has an income i 1000 to spend on clothing and food
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