Three strategies for finding the optimal choice

Summary

• Find \(MRS\) and solve the equations \(MRS=-p_1/p_2\) and \(p_1x_1+p_2x_2=m\) for \(x_1,x_2\)
• Solve budget constraint for \(x_1\) or \(x_2\) and substitute into utility function
• Solve using the Lagrangian