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Consider the following utility function U x,y x3y45DWikafTCt+dt1ffO8qzo8bCnCeUQlXRSPrZaZvM 1 Given the above utility function what is the MRS Is the MRS increasing, decreasing, or

Consider the following utility function: U(x,y) = x3y45DWikafTCt+dt1ffO8qzo8bCnCeUQlXRSPrZaZvM 1. Given the above utility function, what is the MRS? Is the MRS increasing, decreasing, or constant in x? 2. Write out the Lagrangian. 3. Derive the first order conditions to the utility maximization problem. 4. Derive the demand functions for goods x and y (find x* and y*). 5. Suppose utility is now given by U(x,y) =min{3x,2ylr6+fALKsEQuLTTYtUAAAAASUVORK5CYII=}. Derive the demand functions for goods x and y (find x* and y*).

Jun 01 2020 Read more Less More

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