Processing...
`u(x, y) = xstar,ystar = (a*y)/((a+b)*px) , (b*y)/((a+b)*py)`
Enter a value for all fields
The Cobb-Douglas Utility Maximizing Consumption Bundle calculator computes the x and y value for the maximized consumption based on the utility exponents for two goods, the price of the two goods and the consumer income level.
INSTRUCTIONS: Choose units and enter the following:
- (a) Utility exponent for good x
- (b) Utility exponent for good y
- (px) Price of good x
- (py) Price of good y
- (y) Consumer Income Level
Utility Maximizing Consumption Bundle ( x*, y*): The calculator returns the maximized bundle.
The Math / Science
The formula for the Cobb-Douglas Utility Maximizing Consumption Bundle is:
x* `= (a*y)/((a+b)*px)`
y* `= (b*y)/((a+b)*py)`
where:
- x*,y* = Utility Maximizing Consumption Bundle
- a = Utility exponent for good X
- b = Utility exponent for good Y
- px = Price of good X
- py = Price of good Y
- y = Consumer Income Level
`x^alphay^beta::: P_x\x + P_y\y = Y`
Economics Calculators
- Average Total Cost
- Basic Price Elasticity of Demand.
- Midpoint Method of Price Elasticity of Demand
- Midpoint Method of Price Elasticity of Demand with automatic Quantity Unit Handling:
- Cobb Douglas Utility Maximizing Consumption Bundle
- Statistics Calculator
- Price and Unit Comparison Shopping Calculator
- Production and Consumption Rate Calculator