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Assume the utility function from two goods (x and y ) given by: U(x,y)= 2x + xy +4y suppose that x and y are purchased in the market at a constant unit price of birr 3 and birr 2 respectively and the consumer has a money income of birr 104, which he spend on the two goods.
a. Formulate the consumer maximization problem
b. Compute and interpret MRSx,y at x = 2 and y = 8
c. Use Lagrangian method to find the values of x and y that maximize utility
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