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1. A consumer purchases x and y and has utility function U = z1/y1/ Her income is $800. The price of X is Px-$20 per

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1. A consumer purchases x and y and has utility function U = z1/y1/ Her income is $800. The price of X is Px-$20 per unit, and the price of y is Py-$20 per unit. Using the Lagrangian approach, answer the following questions as you calculate her optimal consumption basket. A) Set up this constrained maximization problem: B) Write out the Lagrangian: (either general or specific form is fine) L(x,y,A)= C) Solve for the First Order Conditions (FOC): D) Solve for the tangency condition: E) Solve for X and Y. F) Can she afford her basket? What is her utility at the optimal basket? Show all your work. G) Draw it out. Be detailed with bel EVERYTHING

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