Consider the following utility function, u (x1,x2) = xx¹³, where 3 € (0,1) 2 (a) [15 points] Derive the Hicksian demand functions and the expenditure function. (b) [15 points] Derive the indirect utility functions.

Consider the following utility function, u (x1,x2) = xx¹³, where 3 € (0,1) 2 (a) [15 points] Derive the Hicksian demand functions and the expenditure function. (b) [15 points] Derive the indirect utility functions.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.13P

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Question

Consider the following utility function,
u (x1,x2) = xx¹³, where 3 € (0,1)
2
(a) [15 points] Derive the Hicksian demand functions and the expenditure function.
(b) [15 points] Derive the indirect utility functions.

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