Activity 2 a Suppose the utility function for Guyo is given by U= f(X, X,) = X,.25 X,0.-75, Given that the price of commodity X, is Kshs. 10 per unit and that of community X, is Kshs. 15 per unit....

Extracted text: Activity 2 a Suppose the utility function for Guyo is given by U= f(X, X,) = X,.25 X,0.-75, Given that the price of commodity X, is Kshs. 10 per unit and that of community X, is Kshs. 15 per unit. Using Lagrangian multiplier technique determine units of the two commodities Guyo will buy given an income of Kshs. 40,000 in order to maximize his utility. b. Suppose the utility function for Faith is given by U = f(Y, X) = Y3 X2l3. Given that the price of commodity Y is Kshs. 3 per unit and that of community X is Kshs. 5 per unit. Using Lagrangian multiplier technique determine units of the two commodities Faith will buy given an income of Kşhs. 9,000 in order to maximize her utility. University of Nairobí iso 9001:2015 160 Certified http://www.uonbi.ac.ke