Question

d

O See Hint Regina's utility function can be written as 3x0.99,0.80 Her budget equation is 8.00x + 5.00y = 200.00. The Lagrangian is L = 3x0.99,0.80 – 168.00x + 5.00y – 200.00). SL is The partial derivative sx is Choose one: O A. 2.70x-0.190.80 – 8.00a. O B. 3x-0.190.80 – 8.001. O C. 2.70x-0.19–0.20– 8.002. O D. 2.70x-0.19.0.80 – 8.00.

Answer 1

Answer : The answer is option A.

Here L = 3 x^0.90 y^0.80 - $\lambda$(8.00x + 5.00y - 200.00)

Now,

$\delta$L / $\delta$x = 3 * 0.90 x^(0.90 - 1) * y^0.80 - $\lambda$ * 8.00

=> $\delta$L / $\delta$x = 2.70 x^-0.10 y^0.80 - 8.00$\lambda$

Therefore, option A is correct.