# Question: phils utility function is ux13y23 where mux y23 ...

###### Question details

Phil’s utility function is U=X^{1/3}Y^{2/3},
where MUX = Y^{2/3} / 3X^{2/3} and MUY =
2X^{1/3} / 3Y^{1/3}

In Los Angeles, Phil’s net income would equal $3000, and prices of good X and good Y are $2 and $5, respectively. In Washington, D.C., Phil’s net income would equal $4500, and the prices of good X and good Y are $4 and $6, respectively.

a)Where should Phil live if his goal is to maximize his utility? Show your calculations.

b) What is the minimum income Phil would need in London where prices for X and Y are $5 and $8 respectively to achieve the same utility as he would in D.C.?