Question: d2 d3 ) max|U(X1, X2, X3) = x^1 x X2 X3 where a1 + a2 + a3 = 1 and subject to a budget constraint

d2 d3 ) max|U(X1, X2, X3) = x^1 x X2 X3

d2 d3 ) max|U(X1, X2, X3) = x^1 x X2 X3 where a1 + a2 + a3 = 1 and subject to a budget constraint P1X1 + P2X2 + P3X3 = 1 1. Define Lagrangian 2. Write down optimal conditions P1X1 P2x2 P3X3 3. Derive expenditure shares and P1x2

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