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Consider a consumer that faces the following optimization problem Max U=(U(X,Y) x.y s.t PxX+PyY=B, (a) Use the Lagrangian method and solve for the demand
Consider a consumer that faces the following optimization problem Max U=(U(X,Y) x.y s.t PxX+PyY=B, (a) Use the Lagrangian method and solve for the demand for x and y. (b) Use the total-differential approach to (i) obtain the results of optimal x and y, and (ii) perform the comparative static analyses.
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
