Suppose that a consumer’s utility function for two goods (X and Y) is U(X,Y)=10X^0.5 + 2Y.
Price of X is $5 per unit, and price of Y
is $10 per unit. Suppose the consumer must have 80
units of utility, what would be his optimal consumption bundle?
A) Write a statement of the constrained optimization problem
B) Use a Lagrangian to the expenditure minimization problem