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Question: there are two consumers on the market jim and donna...

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There are two consumers on the market: Jim and Donna. Jim’s utility function is U(x, y) = xy. Donna’s utility function is U(x, y) = x 2 y. Income of Jim is mJ = 100 and income of Donna is mD = 150.

a) Find optimal baskets of Jim and Donna when price of y is Py = 1 and price of x is P.

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