Consider a consumer with the following preferences: U (x, y) = 20 logx+ 5 logy who face prices px = 10, py= 10, and has wealth w= 100.
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4. Consider a consumer with the following preferences:


U

(x, y) = 20 logx+ 5

logy


who face prices px = 10, py= 10, and has wealth w= 100.


(a) Write the consumer maximization problem, with all constraints.

(b) Construct the Lagrangian, and solve for the optimal choices of x and y

Verify that you have included the appropriate constraints.

(c) Find the demand curves for x and y

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