A consumer has utility function u(x1, x2) = ln(x1) + 2 In(x2) and income m. a) Find the Marshallian demand for x1 and x2. b) Use the own price Slutsky equation for x1 to determine the income and substitution effects.

A consumer has utility function u(x1, x2) = ln(x1) + 2 In(x2) and income m. a) Find the Marshallian demand for x1 and x2. b) Use the own price Slutsky equation for x1 to determine the income and substitution effects.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 11SQ

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

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Please answer correct calculation asap plz a and b

Don't answer by pen paper plz

A consumer has utility function u(x1, x2) = ln(x1) + 2 In(x2) and income m.
a) Find the Marshallian demand for x1 and x2.
b) Use the own price Slutsky equation for x1 to determine the income and substitution effects.

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