A utility maximizing consumer with two goods x and y is faced with the following direct utility function
U = 2x2xy - 2y2
The prices of the two commodities are 1 shilling each with an income of 6 shillings to
spend on both commodities. You are required to:
a. Set up the budget constraint equation.
i. Set up the Lagrangian function
ii. Determine the bordered Hessian for the problem
iii. Determine whether the function gives a minimum or maximum