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Suppose Paul’s utility is a function of her consumption of soda (X) and slices of pizza...

Suppose Paul’s utility is a function of her consumption of soda (X) and slices of pizza (Y) such that utility U = 10X0.5Y0.4. This means his marginal utility from consumption of sodas is MUX = 5X-0.5Y0.4 and her marginal utility from pizza is MUY = 4X0.5Y-0.6.

a. For a budget of $54, what is Paul’s utility maximizing consumption levels of pizza and soda?

b. What is his total utility at this level of consumption of soda and pizza? Round to the nearest tenth.

       

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