[PDF] A Utility Maximization Example - Charlie Gibbons



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Setting these two equations equal to one another and solving for yin terms of x: 3 40 y x 1 4 = 1 120 x y 3 4 y x 1 4 = 1 9 x y 3 4 y x = 1 94 x y 3 y x 4 = 1 94 y x = 1 9 y = x 9 Taking this result and entering it into the budget constraint:



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