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John consumes two goods X and Y given the following utility function U X3Y2 The price of X Px $10 and the price of

John consumes two goods, X and Y, given the following utility function:

U = X3Y2

The price of X (Px) = $10 , and the price of Y (Py) = $20.

I already solved for the answer x=54 and y=18. The next part of the question is: Say John's friends would want him to buy an equal amount of X and Y.  How much money they would need to pay him, on top of his current income, in order for John to agree to do this voluntarily?

Apr 23 2020 View more View Less

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