Exercise A A consumer seeks to maximise her utility by choosing how much of commodi- ties A and B to consume. Let {EA and $5 denote the quantities demanded, and 19A, 193 the prices. Our consumer has utility u(:cA,xB) = 1n(1 + 33A)+1n(1 + x3) and she is subject to the budget constraint CHAPA + 563193 = M Find the optimal bundle (39:1, 3*3) Exercise B You need to enclose a rectangular eld With a fence. You have 500 meters of fencing material and a building is on the long side of the eld (so you need no fencing there). Determine the dimensions of the eld that will enclose the largest area. Hints: use all the information to determine the objective function and the constraint. It may help to draw. 1. what is the area of a rectangle? Call the short side 93 and the long one 3/. 2. what is the perimeter of a rectangle