Suppose the Following Lagrangian Is Formed to Maximize a Consumer's

question 30

Multiple Choice

Suppose the following Lagrangian is formed to maximize a consumer's utility subject to her budget constraint: ℒ = U(X,Y) + (1,000 − 50X − 5Y) .The first-order conditions for this problem imply:

• A) MRS = 10.
• B) P_X / P_Y = 10.
• C) (  U/  X) / (  U/  Y) = 10.
• D) All of the statements associated with this question are correct.

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Definitions:

Lactose Intolerance

A condition where individuals cannot digest lactose properly, leading to gastrointestinal symptoms upon consuming dairy products.

Lactase Activity

The function of the enzyme lactase, which is responsible for breaking down lactose, a sugar found in milk and dairy products, into simpler sugars that can be absorbed by the body.

Ethnic Group

A community or population made up of people who share a common cultural background or descent.

Left Upper Quadrant

A section of the abdomen located on the left side of the body, above the umbilicus and containing part of the stomach, spleen, and pancreas.