d. the expendeiture function Answer: Equation 8 represents the Expenditure Function: E-2VVP:P2- 2P. (8) e. Use your answers to a and d to derive the Hicksian demand functions for x and y. Compare these t answers to c. Explain what you are doing. Answer: By using Shepard Lemma, Equations 9 and equation 10 represent the Hicksian (Compensated) Demar Function for x and y, respectively: ƏE / ƏPI - x ƏE / ƏP2 = y* x- VVP:/ Pi-2 (9) ... ya- VVP: / P2 (10) ... f. Use your answers to b and c to derive the Marshallian demand functions. Compare these to you for a. Explain what vou are doing.
d. the expendeiture function Answer: Equation 8 represents the Expenditure Function: E-2VVP:P2- 2P. (8) e. Use your answers to a and d to derive the Hicksian demand functions for x and y. Compare these t answers to c. Explain what you are doing. Answer: By using Shepard Lemma, Equations 9 and equation 10 represent the Hicksian (Compensated) Demar Function for x and y, respectively: ƏE / ƏPI - x ƏE / ƏP2 = y* x- VVP:/ Pi-2 (9) ... ya- VVP: / P2 (10) ... f. Use your answers to b and c to derive the Marshallian demand functions. Compare these to you for a. Explain what vou are doing.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:d. the expendeiture function
Answer:
Equation 8 represents the Expenditure Function:
E- 2VVP:P2- 2P:
(8)
e. Use your answers to a and d to derive the Hicksian demand functions for x and y. Compare these to your
answers to c. Explain what you are doing.
Answer:
By using Shepard Lemma, Equations 9 and equation 10 represent the Hicksian (Compensated) Demand
Function for x and y, respectively:
ƏE / ƏP1
ƏE / ƏP2 = yª
x- VVP2/ Pi -2
ya- VVP1/ P2
(10)
f. Use your answers to b and e to derive the Marshallian demand functions. Compare these to your answers
for a. Explain what you are doing.
![1. Duality (Part 3) [Answers a-f Provided by Bartleby Experts]
Let u(x,y)=(x+2)y. Find the following
g.
Write the Slutsky equation for this problem.
a. the Marshallian demand functions for x and y
Answer:
Equations 3 and equation 4 represent the Marshallian demand function:
x(px, py, m) - m2px-1
у - рхрут2рх-1+2у
-m2py+pxpy
(4)
b.
the indirect utility function
Answer
Equation represents the Indirect Utility Function (IUF):
V = (m + 2P1)² / 4P1P2
(5)
с.
the compensated (Hicksian) demand functions for x and y
Answer:
Equations 6 and equation 7 represent the Compensated (Hicksian) Demand Function for x and y,
respectively:
x- VVP2/ P1 –2
ye = VVP1/ P2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6274a625-9a74-4008-b392-f1961eea52c4%2Faa771493-79cf-4151-95d6-6ca617349798%2F0y2y8pi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Duality (Part 3) [Answers a-f Provided by Bartleby Experts]
Let u(x,y)=(x+2)y. Find the following
g.
Write the Slutsky equation for this problem.
a. the Marshallian demand functions for x and y
Answer:
Equations 3 and equation 4 represent the Marshallian demand function:
x(px, py, m) - m2px-1
у - рхрут2рх-1+2у
-m2py+pxpy
(4)
b.
the indirect utility function
Answer
Equation represents the Indirect Utility Function (IUF):
V = (m + 2P1)² / 4P1P2
(5)
с.
the compensated (Hicksian) demand functions for x and y
Answer:
Equations 6 and equation 7 represent the Compensated (Hicksian) Demand Function for x and y,
respectively:
x- VVP2/ P1 –2
ye = VVP1/ P2
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What is the Slutsky Equation for this problem -- Part (g)? I provided the other Answers to show the progression of the problem. Thank you.
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