Question: Constrained optimization. Suppose Alice's utility is given by U=U(X,Y) and her income is given by I = PxX+PyY.Write out the Lagrangian equation that described the

Constrained optimization.

Suppose Alice's utility is given by U=U(X,Y) and her income is given by I = PxX+PyY.Write out the Lagrangian equation that described the problem of maximizingher utility subject to her income constraint. Show the optimality conditions for X* and Y* in terms of the goods' price ratio.

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