1.6 Solving the Consumer's Problem - Practice Problems
You can get utility from consuming Soda \((s)\) and Hot dogs \((h)\), according to the utility function:
\[u(s,h)=\sqrt{sh}\]
The marginal utilities are:
\[\begin{align*} MU_s&=0.5s^{-0.5}h^{0.5} \\ MU_h&=0.5s^{0.5}h^{-0.5} \\ \end{align*}\]
You have an income of $12, the price of Soda is $2, and the price of a Hot dog is $3. Put Soda on the horizontal axis and Hot dogs on the vertical axis.