Question: Consider Anne from the previous question with the utility function U = X2Y2 and facing prices Px and Py and income I. a. Write out

Consider Anne from the previous question with the utility function U = X2Y2 and facing prices Px and Py and income I.

a. Write out the Lagrangian function used for deriving the compensated demand functions.

b. Use the Lagrangian method to derive the compensated demand functions. Show your work.

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