Consider the utility lnction of the following form: u(x, y] = M. The price of good x is $20 and good 32- is $10. Assume
Consider the utility lnction of the following form: u(x, y] = M. The price of good x is $20 and good 32- 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)
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