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Please help me to solve this problem 5. (Points: 20) Consider a consumer with preferences represented by the following utility function: u(x, y ) =

Please help me to solve this problem

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5. (Points: 20) Consider a consumer with preferences represented by the following utility function: u(x, y ) = x3 3 (a) Write this consumer's EMP, given a level of utility u. (Points: 3) Answer: (b) Explain why you can set up a Lagrangian for this problem, that is, why all constraints will be satisfied as equalities or strictly inequalities at the optimum. (Points: 3)

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