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Consider the utility function of the following form: u(x,y) : m. The price of good x is $20 and good y- is $10. Assume total
Consider the utility function of the following form: u(x,y) : m. The price of good x is $20 and good y- is $10. Assume total expenditure on two goods cannot exceed 8200. a) Use the Lagrange method to determine the optimal consumption bundle. Show all working. {8 Marks) b] Verify the optimal consumption bundle in a] above satisfy the consumer equilibrium condition. (2 Marks}
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