Suppose a foreign student studying in Indonesia, together with his classmates, is planning a low- budget holiday to the Western part of Indonesia. She has USD 680 for a year in total for sharing a room that costs USD 8 per night/pax and meals which is estimated to cost USD 5 per day on average. She would like to maximize his utility function below: U = x0.6y0.25 where: U = utility level; X = number of nights of room rental; and Y = number of days of meals Answer the following questions: a. Construct the constraint equation! b. Write the Lagrange Function for the foreign student! c. Write simultaneous equations as the first-order condition (FONC) d. How many nights of room rental and days of meals that are affordable by the total budget? e. Interpret the value of !
没有找到相关结果