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11-02-2024
Mathematics

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(If there is a "^" before a number, that means that number is an exponent) Chrissy spends her income on fishing lures (L) and guitar picks (G) with her utility U(L,G) = L^0.5G^0.5, with MUL = 0.5L^-0.5G^0.5 and MUG = 0.5L^0.5G^-0.5. The price of lures, PL = $2 and the price of guitar picks, PG = $1. Chrissy's income I = $30. What is Chrissy's optimal (utility maximizing) number of lures?

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