The Utility Maximizing Consumption Bundle: Perfect Complements calculator computes the x and y based on the Fixed Utility Coefficients for Goods X and Y, their prices and the consumer's income level.
INSTRUCTIONS: Enter the following:
- (a) Fixed Utility Coefficient for Good X
- (b) Fixed Utility Coefficient for Good Y
- (Px) Price of Product X
- (Py) Price of Product Y
- (Y) Consumer's Income Level
Utility Maximizing Consumption Bundle(x* and y*): The calculator returns the parameters.
The Math / Science
The formula for Utility Maximizing Consumption Bundle: Perfect Complements is:
x* = y/(px+py*a/b)
y* = y/(px*b/a+py)
