Consider the following utility functionuxymin2x3ylet px py, Ask an Expert

Economics

Consider the following utility function

u(x,y)=min(2x,3y)

let Px, Py and I denote the price of x, and the price of y and the income level, respectively

a) find the hicksian deman function for x and y

b) find the expenditure function

c) without solving the utility maximization problem, recover the indirect utility function and the Marshallian demand functions

d) now suppose that Px=4, Py=3, and I=50. Compute the value of the marshallian demands for x and y and the corresponding optimal level of utility, u*

e) use the utility level computed in part (d) the verify the hicksian demands are equal to the marshallian demands for x and y

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91233305

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