Utility Function

A utility function measures a consumer's utility after consuming a combination of products.

Example

Alice loves chocolate (X) and strawberries (Y). Her utility is $$u \left( X, Y \right) = X \times Y$$

If Alice has 2 chocolates bars and 1 strawberry, she gets utility $$u \left( 2, 1 \right) = 2 \times 1 = 2$$

Question

Alice loves chocolate (X) and strawberries (Y).

Her utility function is `u (X, Y) = X^2Y^2`.

What is her utility for 9 chocolate bars and 3 strawberries?

For 9 chocolate bars and 3 strawberries, Alice's utility is $$ u \left( 9, 3 \right) = 9^2\times3^2 = 729 $$