Final answer:
Ahmad's utility function, which is a mixed logarithmic-linear function, requires calculations of MRS and the use of a budget constraint to determine the optimal consumption bundle and ordinary demand functions for goods X and Y.
Step-by-step explanation:
When Ahmad buys two commodities X and Y, with the utility function u(X, Y) = 4 ln(X) + 6 Y, we see that the utility function is a combination of logarithmic and linear preferences, reflecting different attitudes towards consumption of the two goods.
a) The type of this utility function is a mixed logarithmic-linear utility function. b) To determine his optimal consumption bundle, we set the marginal rate of substitution (MRS) equal to the price ratio (Px/Py). First, we calculate the MRS by taking the derivatives of the utility function with respect to X and Y, setting MRS equal to Px/Py, then solving for X and Y using the budget constraint PxX + PyY = M. c) The ordinary demand functions can be derived from the optimal consumption bundle formulas, with X and Y expressed as functions of prices (Px, Py) and income (M). d) When M=LE100, Py= 1, and Px= 1, we would solve the earlier equations with these values to find the optimal quantities of X and Y that Ahmad should consume. e) The solution to Ahmad's consumption bundle under these constraints maximizes his utility given the budget constraint, balancing the last dollar spent on each good for the greatest marginal utility per dollar.