Question: Please help with this question ASAP 2. Micro review. In this question, we'll explore a slight generalization of the utility max- imization problems we considered

Please help with this question ASAP

Please help with this question ASAP 2. Micro review. In this question,

2. Micro review. In this question, we'll explore a slight generalization of the utility max- imization problems we considered in section. Let's suppose we have an economic agent maximizing utility over two goods 21, 12, each with price 1. Furthermore, this agent's utility is given by the following form, called the Stone-Geary utility function: U(X1, 12) = (21 - 01)6(12 - 02)1-8; 00 Note that in the special case when on = 02 = 0, we recover the Cobb-Douglas utility function discussed in section (this may be useful in verifying your answers in (b)). The agent's total budget available for spending is w (you may assume that on + 02 5 w). (a) What is the agent's budget constraint? (b) Solve for the agent's optimal choice of z1, x2. (Hint: is there a handy increasing transformation that would make this problem simpler to solve?) (c) Looking again at your answer in (b) and the original utility function, interpret the role of on in the utility function. What does this represent? (Hint: what would utility look like if x1

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