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Consider the utility function of the following form: (x,y) = xy. The price of good x is $20 and good y is $10. Assume total
Consider the utility function of the following form: (x,y) = xy. The price of good x is $20 and good y is $10. Assume total expenditure on two goods cannot exceed $200. a) Use the Lagrange method to determine the optimal consumption bundle. Show all working. b) Verify the optimal consumption bundle in a) above satisfy the consumer equilibrium condition
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