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Question: Mr. Paul is consuming products X and Y optimally and deriving total utility of 10 utiles. when his budget is increased from K80 to k81, his utility increases from 10 utiles to 10.1 utiles.
a) what is the marginal utility of X at the optimum when the price of X is K20?
b) what is the price of Y when the marginal utility of Y is 4 utiles?
c) compute the Langrange multiplier.
d) what is the utility when the budget is reduced from K80 to K79.
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