Naomi has the following utility function, U(x, y) = x + 3y. Suppose that py > 4pr. What are the hicksian demands of x and y? (a) (ha, hy) = (U₁0) (b) (hr, hy) = (0, U/3) (c) (ha, hy) = (U, U/3) (d) (h 61 (In (1) In (11/2))

Naomi has the following utility function, U(x, y) = x + 3y. Suppose that py > 4pr. What are the hicksian demands of x and y? (a) (ha, hy) = (U₁0) (b) (hr, hy) = (0, U/3) (c) (ha, hy) = (U, U/3) (d) (h 61 (In (1) In (11/2))

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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