Chris consumes only 2 goods, Suppose his utility function is U(X1,X2)=X1 1/3,X2 2/3, Suppose P1 =$2,P2= $8 and income(I)=$600 I want to know how to do the problem, so I need to see all the steps it takes to arrive at the correct answers for a,b and c.
a) Identify marginal utilities of good 1 and good 2(MU1 and MU2)
b) Formulate optimization problem and solve for demand functions for X1 and X2,
c) Obtain the optimal amounts of good 1 and good 2