Question: Derive the Shephard's Lemma by explaining it and verifying the relationship between the Expenditure Function Pxx + Py y subject to xy = U *

Derive the Shephard's Lemma by explaining it and verifying the relationship between the Expenditure Function Pxx + Py y subject to xy = U*(where Wis the target level of utility) and the Hicksian Demand function for good X and Y. Check for the second order conditions and also verify the same using the Envelope Theorem.

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