Don't use ai i will report you answer solve it as soon as possible with proper explanation Suppose you have the utility function of u(x1, x2) = x1x2 and a budget constraint of p1x1 + p2x2 m. Use this information to answer the following questions:(a) What is the Lagrangian for this constrained optimization problem?(b) In the last homework you found that the optimal amount of x*1 was m/2p1 and the optimal amount of x* 2 was m/2p2. How would you find this using the Lagrangian method? Show your work.(c) What do you notice about these two demand functions as their respectiveprices increase?

Part (c): Analysis of Demand Functions with Respect to PricesThe demand functions are:As the…

Answered: Suppose you have the utility function…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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why is there no inclusion of the parameter z in the solutions and the budget constraint?
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