Aura has a utility function

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Aura has a utility function given by U(X, Y) = 4X0.5Y0.5. The current prices of X and Y are $25 and $50, respectively. Laura currently has an income of $750 to spend on X and Y.

a) If Laura is currently consuming 10 units of X, is she maximizing her utility?

Reference no: EM13325157

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