Answered: max U(q1 q2 ) = (5 )q1 0.5 + q2…

max U(q1 q2 ) = (5 )q1 0.5 + q2 s.to Y=P1 q1 + P2 q2 A consumer has the problem defined above. A-) Find MRS B-) Set up the lagrangian and find the demand function of q1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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max U(q1 q2 ) = (5 )q1 ^{0.5 + q2} s.to Y=P1 q1 + P2 q2

A consumer has the problem defined above.

A-) Find MRS

B-) Set up the lagrangian and find the demand function of q₁

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