Question: Consider the problem max U(x, y) = 100-e-es.t. px + qy=m. (a) Write down the first-order conditions for the problem and solve them for

Consider the problem max U(x, y) = 100-e-es.t. px + qy=m. (a) Write down the first-order conditions for the problem and solve them for x, y, and as functions of p, q, and m. What assumptions are needed for x and y to be nonnegative? (b) Verify that x and y are homogeneous of degree 0 as functions of p, q, and m.

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