Question: 1 Suppose w e have a consumer with utility U ( x , Y ) = x 2 5 Y 3 5 . She has
Suppose have a consumer with utility She has income $ and faces
prices $ and $
Clearly state the Consumer's Optimization Problem words.
Sketch the problem set, indifference curves, and optimal solution
What two equations describe the solution the problem. Explain.
Solve for optimal consumption and
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