1) Suppose that a person consumes two goods, x and y, in fixed proportions. He or she always consumes 1 unit of x together with 3 units of y no matter what the relative prices are.a) What is the mathematical form for this person's utility function?b) Calculate the Marshallian demand functions for both goods for this person.c) Calculate the indirect utility function and the expenditure function for this person.d) In class we discussed why expenditure functions are concave in prices. Is the expenditure function you calculated in part (c) concave in ??? Suppose that a person consumes two goods, x and y, in fixed proportions. He orshe always consumes 1 unit of x together with 3 units of y no matter what the relative pricesare.a) What is the mathematical form for this person's utility function?b) Calculate the Marshallian demand functions for both goods for thisc) Calculate the indirect utility function and the expenditure function for this person.d) In class we discussed why expenditure functions are concave in prices. Is the expenditurefunction you calculated in part (c) concave in px?person.

If a person consume 1 unit of x and 3 units of y together in a fixed proportion. Find: a)…

Answered: 1) Suppose that a person consumes two…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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1) Suppose that a person consumes two goods, x and y, in fixed proportions. He or she always consumes 1 unit of x together with 3 units of y no matter what the relative prices are.
a) What is the mathematical form for this person's utility function?
b) Calculate the Marshallian demand functions for both goods for this person.
c) Calculate the indirect utility function and the expenditure function for this person.
d) In class we discussed why expenditure functions are concave in prices. Is the expenditure function you calculated in part (c) concave in ???

Suppose that a person consumes two goods, x and y, in fixed proportions. He or
she always consumes 1 unit of x together with 3 units of y no matter what the relative prices
are.
a) What is the mathematical form for this person's utility function?
b) Calculate the Marshallian demand functions for both goods for this
c) Calculate the indirect utility function and the expenditure function for this person.
d) In class we discussed why expenditure functions are concave in prices. Is the expenditure
function you calculated in part (c) concave in px?
person.

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