Determine the units of the two commodities to buy


Problem: Suppose the utility function for guyo is given by U=f(X1,X2)=X10.25X20.75.Given that the price of commodity X1 is Kshs.10 per unit and that of commodity X2 is Kshs.15 per unit. Using the lagrangian multiplier technique determine the units of the two commodities Guyo will buy given an income of Kshs.40,000 in order to maximize his utility?

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Microeconomics: Determine the units of the two commodities to buy
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