Can you help with question 6? %0+69 / 310er Hammond,Atle Seierstad,Ar.CHAPTER 3 I STATIC OPTIMIZATION5. (a) Solve the problem max 1 -rx? – y² subject to x + y = m, withr > 0.(b) Find the value function f*(r, m), compute af*/ar and af"/əm and verify (15).SM 6. (a) Solve the problemmax x² + y² + z? subject to x² + y² + 4z² = 1and x+3y + 2z = 0(b) Suppose we change the first constraint to x² + y² + 4z? = 1.05 and the second constraintto x +3y + 2z = 0.05. Estimate the corresponding change in the value function.7. (a) In Example 4 let U(x)constants with L=1¤jLj=1 aj In(x; – aj), where a;, aj, Pj, and m are all positiveLi=1 Piaj. Show that if x* solves problem(16), then the expenditure on good j is the following linear function of prices and income1, and with m >Pjx; = ajm + Pjaj – aj 2 Pia¡,j = 1,2, ..., ndy

Name: Can you help with question 6? %0+69 / 310er Hammond,Atle Seierstad,Ar.
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Description: Can you help with question 6? %0+69 / 310er Hammond,Atle Seierstad,Ar.CHAPTER 3 I STATIC OPTIMIZATION5. (a) Solve the problem max 1 -rx? – y² subject to x + y = m, withr > 0.(b) Find the value function f*(r, m), compute af*/ar and af"/əm and verify (