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• Given the following direct utility functions, (i) u (×1, ×2) = ½³×²×², -α (ii) u (×1, ×2) = (x² + ×2) and (iii) u(x) = xaxa, obtain the corresponding expenditure functions. From the expenditure functions, use the Shephard's Lemma assumption to obtain the Hicksian demand functions.

• Given the following direct utility functions, (i) u (×1, ×2) = ½³×²×², -α (ii) u (×1, ×2) = (x² + ×2) and (iii) u(x) = xaxa, obtain the corresponding expenditure functions. From the expenditure functions, use the Shephard's Lemma assumption to obtain the Hicksian demand functions.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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• Given the following direct utility functions, (i) u (×1, ×2) = ½³×²×², -α (ii) u (×1, ×2) = (x² + ×2) and (iii) u(x) = xaxa, obtain the corresponding expenditure functions. From the expenditure functions, use the Shephard's Lemma assumption to obtain the Hicksian demand functions.
Transcribed Image Text:• Given the following direct utility functions, (i) u (×1, ×2) = ½³×²×², -α (ii) u (×1, ×2) = (x² + ×2) and (iii) u(x) = xaxa, obtain the corresponding expenditure functions. From the expenditure functions, use the Shephard's Lemma assumption to obtain the Hicksian demand functions.
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