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IGNORE SOLUTIONS, I NEED TO KNOW HOW TO GET TO THE SOLUTION. (b) Utility Function: U = vx + vy Budget Constraint: 50 = 2x
IGNORE SOLUTIONS, I NEED TO KNOW HOW TO GET TO THE SOLUTION.
(b) Utility Function: U = vx + vy Budget Constraint: 50 = 2x + 5y Find the optimal values of x and y Solution: x=125/7 y=20/7 (c) Utility Function: U = 2x + 3y + xy Budget Constraint: 150 = 3x + 4y Find the optimal values of x and y Solution: x=149/6 y=151/8 3. (a) Expenditure Function: E = 5x + 3y Utility Constraint: 50 = xy Solve for the optimal values of x and y Solution: y= /250/3 X= * 250/3 (b) Expenditure Function: E = 2x + 3y Utility Constraint: 30 = vx + y Solve for the optimal values of x and y Solution: y=144 x=324Step by Step Solution
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