Question
Assume a consumer with the utility function U = U(X, Y) = X 2 Y 2 and the typical budget constraint M = P x
Assume a consumer with the utility function U = U(X, Y) = X2Y2 and the typical budget constraint M = PxX + Py Y a. Set up the constrained maximization problem and derive the first-order conditions.
b. Derive the consumer's demand for X and Y in terms of the parameters
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
