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:
Utility Maximizing Consumption Bundle ( x*, y*): The calculator returns the maximized bundle.
x* `= (a*y)/((a+b)*px)`
y* `= (b*y)/((a+b)*py)`
`x^alphay^beta::: P_x\x + P_y\y = Y`