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Given: U = XY, prices of goods P X =5, P Y =10 & income I = 200, Use the Lagrange Multiplier Method for finding

Given: U = XY, prices of goods PX=5, PY=10 & income I = 200,

Use the Lagrange Multiplier Method for finding the optimal levels of X, Y, and U. and graphically illustrate the resulting substitution, income, and net effects if the price of good Y is cut in half, cet. par.

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