Question: Assume a consumer's level of satisfaction ( U ) when consuming units of two products, X and Y , is U = 2 x 0

Assume a consumer's level of satisfaction (U) when consuming units of two products, X and Y, is
U=2x0,6y04, where X and Y are the quantities of goods X and Y. Assume furthermore that the prices
of X and Y are $2 and $4 respectively.
1.a Find the quantities of X and Y by making use of Lagrange if the consumer plans to consume
the products in such a way as to receive a total satisfaction of 100(1,75 points)
1.b Calculate the budget that must be spent to acquire the combinations found in part a (0.25
points)
2.a What would be the quantities of X and Y that this consumer should purchase if he spends a
budget of 1002(1.75 points)
2.b What would be the consumer's satisfaction from the combination found in 2.b

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