microeconims help please

[Shoppingal]

Robert purchases only apples(A) and Berries(B). His utilities are described by the function U=AB. Initially apples cost$4 while Berries are $2 and Robert has an income of $400. The government introuduces a new tax that reduces his income by 20% but provides a $2 unit subsidy for apples. Calculate his utility maximizing bundle before and after the new tax law. Does the budget make Robert better off or worse?

I am not quite sure how to start this off any help would be appreciated.

400=4(2)
400=8
U=50

400(0.2)= 320 less 20% tax

 

[tkhunny]

Robert purchases only apples(A) and Berries(B). His utilities are described by the function U=AB. Initially apples cost$4 while Berries are $2 and Robert has an income of $400. The government introuduces a new tax that reduces his income by 20% but provides a $2 unit subsidy for apples. Calculate his utility maximizing bundle before and after the new tax law. Does the budget make Robert better off or worse?

I am not quite sure how to start this off any help would be appreciated.

400=4(2)
400=8
U=50

400(0.2)= 320 less 20% tax

What? Please NEVER again write anything like "400=8"!

A = # of Apples Purchased
B = # of Berries Purchased

4A + 2B = 400

You must maximize A*B, subject to the constraint just written.