A Consumer Has Preferences Given by the Constant Elasticity of Substitution

question 23

Essay

A consumer has preferences given by the constant elasticity of substitution utility function:
U(q₁,q₂)= (q₁^.5 + q₂^.5)²
a.Write the Lagrangian for the consumer's maximization problem.
b.Use the Lagrangian to solve for the optimal quantities in terms of the prices and income.

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Definitions:

Race

A social construct used to categorize humans into large and distinct groups based on physical appearances, ancestry, and cultural history.

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An organization that has core values that respect diversity and support multiculturalism.

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