Phil's Utility Function Is U = XY, Where MU_X =

Essay

Phil's utility function is U = XY, where MU_X = Y and MU_Y = X. In Lancaster, Pennsylvania, Phil's income would equal $500, and the prices of good X and good Y are $5 and $5, respectively. In Washington, D.C., Phil's income would equal $800, and the prices of good X and good Y are $8 and $10, respectively. Where should Phil live? Show your work.