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1. A consumer is faced with the Utility function U = InX + InY. The budget I constraint is given as: I = PxX + PyY. Derive th
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U enx teny I, PxX + P4.4 Budget constraint : I a) maxre U wort L = enx + eny-X (Px X + Py.Y) G Using lagrangean multip functiPurice natio is the ratio of goods Xandy .. 9ts cobb Douglas function unatog U alnut beny where a= b=1 xcole alm. atb EIN EIb) I Manze wor. t. LE Pxx+P 4 Y - + enx teny) PX X- OL дх Px - 1 х / OL ay Pytd x = ly Y I OL ad enxt lnY=0 Pyx = Pyy Pu Х He

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