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Derive the demand for x and y

Assignment Help Macroeconomics
Reference no: EM13339724

Assume a comsumer with the utility function

U = U(x,y) = (X + 2)(Y + 1)

and the budget constraint

M = PxX + PyY

a. Set up the constrained maximization problem, and derive the firsr-order conditons.

b. Derive the demand for X and Y.

Reference no: EM13339724

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