Problem 2 Joan has the following utility function: u(x, y) = 5x + 3y. (a) Find Jane's marshallian demands. (b) Find Jane's hicksian demands. Consider that income is I = $8, and prices are given as p= $4, Py = $2. %3D (c) Does Jane have enough money to attain a utility level of 20? Justify your answer. (d) Assume the price of y marginally increases. Find the total, income and substitution duo to the change in Du.
Problem 2 Joan has the following utility function: u(x, y) = 5x + 3y. (a) Find Jane's marshallian demands. (b) Find Jane's hicksian demands. Consider that income is I = $8, and prices are given as p= $4, Py = $2. %3D (c) Does Jane have enough money to attain a utility level of 20? Justify your answer. (d) Assume the price of y marginally increases. Find the total, income and substitution duo to the change in Du.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 1SQ
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