Math Problem Statement
Solution
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Math Problem Analysis
Mathematical Concepts
Elasticity of Demand
Cross-price Elasticity
Lagrange Multipliers
Utility Maximization
Budget Constraints
Formulas
Ep = (dQ/dP) * (P/Q)
Cross-price elasticity
Lagrange function L = X^0.6 Y^0.4 + λ (budget constraint)
Utility function TU = X^0.6 Y^0.4
Theorems
Lagrange Multiplier Theorem
Elasticity of Demand Theorem
Suitable Grade Level
Undergraduate Economics or Advanced High School Math
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