Consider a cobb-douglas utility function of the type uxy, Ask an Expert

Economics

Consider a Cobb-Douglas utility function of the type u(x,y) =x2y2. The prices of the two goods x,y are px = $2 and py=$4 consumers income is given by m=$100.

A) find the optimal basket containing these two goods.

B) find the demand functions for x. Must be shown graphically too.

C) what are the shares of income spent on each good?

D) draw the Engel curve for x

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91707845

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