Given f(x,y) = 2x2 - 5xy + 5y2, and Px= 7, Py= 6 and income, I = 169. Construct the budget contraint and Lagrange function and solve for the equilibrium values of x and y. (a) What is the equilibrium...

Given f(x,y) = 2x2 - 5xy + 5y2,

and Px= 7, Py= 6 and income, I = 169.

Construct the budget contraint and Lagrange function and solve for the equilibrium values of x and y.

(a) What is the equilibrium value of x? (Give your answer to two decimal places, if required)

(b) What is the equilibrium value of y? (Give your answer to two decimal places, if required)

(c) What is the value of the determinant of the bordered Hessian matrix? (Give your answer to two decimal places, if required)

(d) Based on the value of the Bordered Hessian, comment whether the obejective function is maximised or minimised.