Homework answers / question archive / The problem is to maximise utility u(x, y) = 2*x +y s

The problem is to maximise utility u(x, y) = 2*x +y s

Economics

Share With

The problem is to maximise utility u(x, y) = 2*x +y s.t. x,y 2 0 and p*x + q*y sw, where p=13.4 and q=3.9 and w=1. Here, * denotes multiplication, / division, + addition, - subtraction. The solution to this problem is denoted (x_0, y 0) =(x(p, q, w), y(p, q, w)). The solution is the global max. Find du(x_0,y_0)/Op evaluated at the parameters (p, q, w) =(13.4, 3.9, 1). Write the answer as a number in decimal notation with at least two digits after the decimal point. No fractions, spaces or other symbols. Answer: