Waldo's utility function is defined by u ( x 1 , x 2 ) x 1 x 2 Find Waldo's optimal consumption of x 1 and x 2 subject to the constraints that he cannot spend more than w on the two goods, and his consumption of x 1 must be greater or equal to some constant a (Make sure to check for corner solutions, by presenting two conditions 1) the constraint is met and 2) the constraint is not met

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Question: Waldo's utility function is defined by u ( x 1 , x 2 ) = x 1 x 2 . Find Waldo's optimal consumption of

Waldo's utility function is defined by u(x₁, x₂) = x₁x₂. Find Waldo's optimal consumption of x₁and x₂subject to the constraints that he cannot spend more than w on the two goods, and his consumption of x₁must be greater or equal to some constant a (Make sure to check for corner solutions, by presenting two conditions:1) the constraint is met and 2) the constraint is not met.

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