Diogo has a utility function
U(q₁ · q₂)q₁^0.2 q₂^0.8
where q₁ is chocolate candy and q₂ is slices of pie. If the price of slices of pie, p₂, is $1.00, the price of chocolate candy, p₁, is $0.50 and income Y is $100, what is Diogo optimal bundle?

Q&A Education