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Economics 1A consumer has the following utility function: U(x,y)=x(y+1), where x and y are quantities of two consumption goods whose prices are Px and Py,
Economics 1A consumer has the following utility function: U(x,y)=x(y+1), where x and y are quantities of two consumption goods whose prices are Px and Py, respectively. The consumer also has a budget of B. Therefore, the Lagrangian for this consumer is (a)Verify that this is a maximum by checking the second-order conditions. By substituting x* and y* into the utility function, find an expression for the indirect utility function and derive an expression for the expenditure function (b)This problem could be recast as the following dual problem Find the values of x and y that solve this minimization problem and show that the values of x and y are equal to the partial derivatives of the expenditure function,respectively
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