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1. Use the method of Lagrange multiplicrs with incquality first-order conditions to determine if corner solutions arise with the following utility functions. If not, explain
1. Use the method of Lagrange multiplicrs with incquality first-order conditions to determine if corner solutions arise with the following utility functions. If not, explain why not. If so, outline the condition under which a corner solution arises and find the Marshallian demands in these cases. (a) U(x,y)=x+y (b) U(x,y)=x+y 2. Find the Marshallian demands for x and y for the utility function in part (b) of the previous question when an interior solution exists. Use your solution to confirm the condition that you found previously for a corner solution to arise. 3. Consider the following expenditure function: E(px,py,U)=pxpyU Is this a valid expenditure function? Explain. 1. Use the method of Lagrange multiplicrs with incquality first-order conditions to determine if corner solutions arise with the following utility functions. If not, explain why not. If so, outline the condition under which a corner solution arises and find the Marshallian demands in these cases. (a) U(x,y)=x+y (b) U(x,y)=x+y 2. Find the Marshallian demands for x and y for the utility function in part (b) of the previous question when an interior solution exists. Use your solution to confirm the condition that you found previously for a corner solution to arise. 3. Consider the following expenditure function: E(px,py,U)=pxpyU Is this a valid expenditure function? Explain
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