Suppose a consumer's preferences are represented by the following utility function: u(x, y) = x +...
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Suppose a consumer's preferences are represented by the following utility function: u(x, y) = ¹x + ²y 3 2 Suppose that the prices of goods and the consumer's income are given by Px = 3, Py = 4 and B = 600. Using the Kuhn-Tucker conditions, find the consumption quantities (x* and y*) that maximize the consumer's utility. (Check all three possibilities for full credit.) Find the consumer's maximum utility (u*). Verify these results using the Optim and IpSolveAPI packages in R. (Include the R codes you used and the output results.) Suppose a consumer's preferences are represented by the following utility function: u(x, y) = ¹x + ²y 3 2 Suppose that the prices of goods and the consumer's income are given by Px = 3, Py = 4 and B = 600. Using the Kuhn-Tucker conditions, find the consumption quantities (x* and y*) that maximize the consumer's utility. (Check all three possibilities for full credit.) Find the consumer's maximum utility (u*). Verify these results using the Optim and IpSolveAPI packages in R. (Include the R codes you used and the output results.)
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