Math Question:
Omri’s utility function and budget line are given by:
=(_1,_2 )=2_1^2 _2^1;
,where =(_1,_2 ) is the utility function, and _1+〖3〗_2=8100 is Omri’s
budget line.
_1 is the amount of good 1 consumed.
_2 is the amount of good 2 consumed.
_1 or the price of good 1 is 1 dollar per unit.
_2 or the price of good 2 is 3 dollars per unit.
I or income is 8100 dollars.
How much of each good should Omri buy to maximize his utility?