Question: Consider a consumer that faces the following optimization problem Max U=(U(X,Y) x.y s.t PxX+PyY=B, (a) Use the Lagrangian method and solve for the demand

Consider a consumer that faces the following optimization problem Max U=(U(X,Y) x.y s.t PxX+PyY=B, (a) Use the Lagrangian method and solve for the demand for x and y. (b) Use the total-differential approach to (i) obtain the results of optimal x and y, and (ii) perform the comparative static analyses.

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