costs. If revenue is greater than variable costs, the firm continues production; otherwise, it shuts down. Questions 7. A consumer has Birr 600 to spend on two commodities, the first of which costs Birr 20 per lit, and the second Birr 30 per unit. Suppose that the utility derived by the consumer from X units oft 'the first commodity and Y units of 'the second commodity is given as UCX, Y)= 10X0.6y04 A. Construct budget equation B. How many units of each commodity should the consumer buy to maximize utility? C. Find Total utility D. Find the value of lagragian multiplier (7) and what is the economic interpretation. of(^). E. Show the consumer equilibrium condition graphically
