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Suppose that a consumer has a linear utility function of the following form. U(x,y) = xty. Let Px and Py represent the prices of x
Suppose that a consumer has a linear utility function of the following form. U(x,y) = xty. Let Px and Py represent the prices of x and y, respectively. m denotes income. Suppose that Px=0.25m and Py=0.5m. Find the values of x and y that maximize utility subject to the relevant budget y constraint.
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