1. Assume you spend your entire incomc on two goods X & Y with prices given as Px & Py, respectively. Prices and income (1) are exogenous and positive. Given that U = X + Y', derive the Marshallian demand function for good Y and evaluate the type of good.

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Chapter1: Making Economics Decisions
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1. Assume you spend your entire income on two goods X & Y with prices given as Px & Py,
respectively. Prices and income (1) are exogenous and positive. Given that U =X² + Y°,
derive the Marshallian demand function for good Y and evaluate the type of good.
2. Assume you spend your entire income on two goods X & Y with prices given as Px & Py,
respectively. Prices and income (I) are exogenous and positive. Given that U= X'Y',
derive the Hicksian demand function for good Y.
Transcribed Image Text:1. Assume you spend your entire income on two goods X & Y with prices given as Px & Py, respectively. Prices and income (1) are exogenous and positive. Given that U =X² + Y°, derive the Marshallian demand function for good Y and evaluate the type of good. 2. Assume you spend your entire income on two goods X & Y with prices given as Px & Py, respectively. Prices and income (I) are exogenous and positive. Given that U= X'Y', derive the Hicksian demand function for good Y.
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