The Cobb-Douglas utility function gives a simple indifference map:

A budget curve gives the set of possible consumption choices with a given income. If you have an income of $196 and the price of good X is given by

A utility maximizing combination of goods X and Y occurs when the budget line is tangent to an indifference curve.

Find X as a function of its price, where

(If Y represents all other goods, than this function is just a demand curve for X).

(Use px for

Let

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