Many maximum problems have an associated dual minimum problem. A consumer . wish

Question

Many maximum problems have an associated dual minimum problem. A consumer . wishes to minimize the expenditures of consuming a given bundle of two goods (k and y) that generates a specific level of utility Uo Utility is generated according to U=(xy+3 ·xy Describe, mathematically the amount of x and y that will minimize the expenditures necessary to obtain the desired level of utility Uo (You need not a. b. Outline the required second order conditions for the minimum for this problem. c. Show graphically and provide an economic explanation for your solution. d. Demonstrate mathematically that your graphical and economic explanations are e. Solve mathematically for the dual utility maximization problem for the f. Explain and show graphically the conditions necessary for the solutions from the solve for the specific amounts of x and y.) (4 points) (You need not solve for the specific derivatives.) (2 points) (4 points) met. (2 points) consumer. (4 points) two models to be identical. (4 points)

Explanation / Answer

Ans a Put the value in the above equation of x and y = 1

So the solution of the above question is 2.

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