This question will let you examine/explore a more interesting utility function than the simple example discussed in class as there will be both cross-price elasticity and an inferior good. Suppose you are told a consumer has the following utility function: U(qx, qz) = qx +√(qx + qz) You should assume income is Y , the price of good x is Px, and the price of good z is Pz.  Question:What is the Marshallian demand for goods x and z? I.e. find (qx, qz) for both interior solutions and corner solutions. Note: the outcome is “ugly” for the interior section

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This question will let you examine/explore a more interesting utility function than the simple example discussed in class as there will be both cross-price elasticity and an inferior good. Suppose you are told a consumer has the following utility function: U(qx, qz) = qx +√(qx + qz)
You should assume income is Y , the price of good x is Px, and the price of good z is Pz. 

Question:What is the Marshallian demand for goods x and z? I.e. find (qx, qz)
for both interior solutions and corner solutions. Note: the outcome is “ugly”
for the interior section and both corner should include constraints, i.e. limits
using Y relative to f(Px, Pz).

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