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Answer to Question #51481 in Differential Equations for ALEXANDER
Question #51481
Given the following monotonically transformed utility function faced by the consumer
lnU(X1X2) = ∝lnX1+βlnX2
The price of good X1 is P1 and the price of good X2 is P2.
Construct the corresponding Langregian function
Derive the optimal demand (Marshallian demand) function for X1 and for X2.
lnU(X1X2) = ∝lnX1+βlnX2
The price of good X1 is P1 and the price of good X2 is P2.
Construct the corresponding Langregian function
Derive the optimal demand (Marshallian demand) function for X1 and for X2.
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