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1. Consider the same consumer from Assignment 2a whose preferences can be described by the utility function ???? = 9????(???? 5). Consider only ???? >

1. Consider the same consumer from Assignment 2a whose preferences can be described by the utility function ???? = 9????(???? 5). Consider only ???? > 0 and ???? > 5 to keep things simple. Assume there are only interior solutions to the optimization problems (which will be the case) so you do not have to impose the ???? > 0 and ???? > 5 retrictions in the optimization.

1 a. Write out the Lagrangian function that one would use to solve the consumer's expenditure minimization problem. Use the Lagrangian to derive the first order conditions for an interior solution to the consumer's expenditure minimization problem. Show your work. 1b. Derive the consumer's Hicksian or compensated demand functions for x and y. Show what their arguments are, i.e. what they are function of. [Hints: keep (???? 5) as is (i.e. don't multiply out terms). Isolate (???? 5) 2 on one side of the equation and then take the square root. ]

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