Consider the utility function as where q1 and q2 are two commodites on whic...........

Economics-I Theory of Consumer’s Demand

Consider the utility function as $\small U = \sqrt{q_{1}q_{2}}$ , where q₁and q₂are two commodites on which the consumer spends his entire income of the month. Let the price per unit of q₁ and q₂ be Rs 40 and Rs 16 respectively and monthly income of the consumer be Rs 4000. Find out the optimal quantities of q₁and q_2.(200 words) (15 Marks)