Question: Question Consider the utility function of the following form: (, ) = . The price of good x is $20 and good y is $10.

Question

Consider the utility function of the following form: (, ) = . The price of good x is $20 and good y is $10. Assume total expenditure on two goods cannot exceed $200.

a) Use the Lagrange method to determine the optimal consumption bundle. Show all working.

b) Verify the optimal consumption bundle in a) above satisfy the consumer equilibrium condition.

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3. Give away need to know information and you will get back information that you find useful.

4. Present multiple themes at once. Then you will get to know a little about how others think, when some of the themes are rejected.

5. Get a third party to mediate, so that both parties have the opportunity to go back to their original negotiating point that they had before the third party put forward his/her proposal.