Use the method of Lagrange multipliers with inequality first-order conditions to determine if corner solutions arise with
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Question:
Use the method of Lagrange multipliers with inequality first-order conditions to determine if corner solutions arise with the following utility functions. If not, explain why not. If so, outline the condition under which a corner solution arises and find the Marshallian demands in these cases. (a) U(x, y) = (x + 1)y (b) U(x, y) = x + y
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