Find best indifference curve and best affordable point

Reference no: EM1381281

Assume you can only consume good X and Y out of abudget of $120. Your utility function is U = ln(X)+ln(Y ).
What are the quantities of Xand Y consumed at the best a®ordable point? Also, on the 2 dimension space of X andY, use computer softwares to draw the budget line, best indifference curve (thehighest indifference curve the budget line can touch) and best affordable point.

Note: The best indi®erence curve is actually Y = 3600
X . If you cannot show the solving procedure
for this, you can start answering the whole question by directlyusing this result from the
beginning.

Reference no: EM1381281

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