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

Question 30

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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) PX / PY = 10.
C) (U/X) / (U/Y) = 10.
D) All of the statements associated with this question are correct.

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