3. suppose a consumer consumes two goods. Shawarma fries and milktea and has utility functionu(xV)=XV. The price of shawarma fries is Px=100 and the price of milktea is Py=120. He has a budget ofPhp 660. Find its optimal consumption using lagrange method.wwwa

Setting up the Lagrange’s function by maximizing the utility function with respect to the budget…

Answered: 3. suppose a consumer consumes two…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. suppose a consumer consumes two goods. Shawarma fries and milktea and has utility function u(xy)=XV. The price of shawarma fries is Px=100 and the price of milktea is Py=120. He has a budget of Php 660. Find its optimal consumption using lagrange method.