Question: Consider a person whose preferences can be represented by the utility function U = q]_ l Aqg %Bq where the parameters satisfy A > 0

Consider a person whose preferences can be represented by the utility function U = q]_ l Aqg %Bq where the parameters satisfy A > 0 and B > 0. The person has given income Y and faces given prices p1 and p2. Given this information: 1. Formally (i.e., in mathematical form) state the person's utility maximization problem. 2. Formally state the equivalent problem in the form of a Lagrangian. 3. Derive the rst order conditions for a utility maximizing solution. 4. By solving the first order conditions algebraically, derive the solutions for good 1 and good 2

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