# small doubt

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## small doubt

 This post was updated on . Q  Ambrose's utility function is U(x; y) = x+ 4y^1/2. The price of x is 1 and the price of y is 2. If his income rises from 100 to 150, his consumption of y increases by more than 10% but less than 50%?? how to solve ??
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## Re: small doubt

 What's the question here?
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## Re: small doubt

 true or false?? with soln
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## Re: small doubt

 What's the utility function, btw? Is it U(x,y)=4x+y? This could be solved by using the Lagrangean Optimization method by optimizing the utility functions with respect to the budget constraint and by proceeding to solve for x and y. The percentage change in the value of y gives you the result.
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## Re: small doubt

 In reply to this post by hs
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## Re: small doubt

 drefus bro pls check i updated the question sorry for error
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## Re: small doubt

 This post was updated on . pls. explain  (0,m/py)   if px/py > py/4m
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## Re: small doubt

 the ICs of the given utility function are concave, and if you plot one its IC with y-intercept = (M/Py) then x-intercept of that IC has to be (4M^2/Py^2) and the slope of the line connecting these two points is (Py/4M). Now you can find the condition for different corner solutions.