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24-05-2023
Business

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1. Given the utility function, prices of goods, and income below, find the optimal bundle of goods by the Lagrange method. Illustrate the budget constraint, the indif- ference curve, and the optimal bundle on a graph. Determine the type of the utility function given in each case.
(a) u(x1,x2)-1/2/4, p1 =
5, p= 4, and I = 400.

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