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Envelope Theorem Question Consider the situation depicted in Figure 1. Which of the following statements is correct? Figure 1: (a) If A is the soiution

Envelope Theorem Question

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Consider the situation depicted in Figure 1. Which of the following statements is correct? Figure 1: (a) If A is the soiution to the problem may 1.:(1', y) s.t. m = 1p: + ypy then A is also the solution to mirth? e(p,,py,u) where e = m and v = u. (b) The problem maxx'y u(a:, y] 3.1;. m = sup: +ypy yields the Marshallian demand for 3:, 9:\" (1);, 139. m). (c) The problem min\

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