(2E) I need an urgent answer for this one! Instructions: 1. Show your complete solution to the problem. 2. State clearly your assumptions in your solution. 3. Type only the solutions here, please do not handwritten it. Male sure to make your equations, formulas and solutions clear and right.I will click thumbs up if I'm satisfied with your service. 2. Consider the utility function of individual A given by Ua (X,Y) = X0.5 y0.5 in answering theitems below:a. Calculate the marginal utility for each good (MUx & MUY) of individual A and themarginal rate of substitution (MRSXY). Interpret your computed values.b. If Px = 0.5, Py = 1, and I = 10, solve for X*, Y*, and U* using the LagrangeMultiplier Method.

Given Utility function U=X0.5Y0.5 Px=0.5 Py=1 I=10

Answered: 2. Consider the utility function of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(2E) I need an urgent answer for this one! Instructions: 1. Show your complete solution to the problem. 2. State clearly your assumptions in your solution. 3. Type only the solutions here, please do not handwritten it. Male sure to make your equations, formulas and solutions clear and right. I will click thumbs up if I'm satisfied with your service.

2. Consider the utility function of individual A given by Ua (X,Y) = X0.5 y0.5 in answering the
items below:
a. Calculate the marginal utility for each good (MUx & MUY) of individual A and the
marginal rate of substitution (MRSXY). Interpret your computed values.
b. If Px = 0.5, Py = 1, and I = 10, solve for X*, Y*, and U* using the Lagrange
Multiplier Method.

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