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Please help me to solve these two questions, and could you write down the steps. Thank you! Question 1 Maximise n = e'f'e' subject to
Please help me to solve these two questions, and could you write down the steps. Thank you!
Question 1 Maximise n = e'f'e'\" subject to the budget constraint: Y = Plel + Pgog. Show that at the optimum, the marginal rate of substitution between c1 and :2 equals the prioe ratio. lQuestion 2 Repeat the exercise in Question 3, but assume that there is tax on good 2? such that the budget constraint is: Y = Plel + {1 + $132.23. Show how this will affect the optimal choice between the two goodsStep by Step Solution
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