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SOLVED: A classic constrained utility maximization problem is to maximizing Utility function Ulx;y) by choosing the optimal quantities of x and y such that; given prices px 0 and Py > 0, total spending does not exceed budget M > 0. In this model,x and y are endogenous variables; Pr: Py and M are exogenous parameters Assume that we don t know anything about the shape of U except that it is a continuous function for all non-negative (x,y). max U(x,y) TJ S x>0 J20 Prr + pyy < M The set (x,y) Ix20,
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