Paige has the utility function \( U(x, y) = \ln(x) + 4y \).Do not worry about corner solutions when answering the following questions, you can use the Lagrangian multiplier method. Paige's budget constraint is \( p_x x + p_y y = I \). ### What are Paige's Marshallian Demand Functions?1. \( g_x(p_x, p_y, I) = \frac{I}{p_y} - 2; \quad g_y(p_x, p_y, I) = \frac{p_y}{2p_x} \)2. \( g_x(p_x, p_y, I) = \frac{I}{p_y} - 4; \quad g_y(p_x, p_y, I) = \frac{p_y}{4p_x} \)3. \( g_x(p_x, p_y, I) = \frac{p_y}{4p_x}; \quad g_y(p_x, p_y, I) = \frac{I}{p_y} - \frac{1}{4} \)4. \( g_x(p_x, p_y, I) = \frac{p_y}{2p_x}; \quad g_y(p_x, p_y, I) = \frac{I}{p_y} - 2 \)5. \( g_x(p_x, p_y, I) = \frac{p_x}{4p_x}; \quad g_y(p_x, p_y, I) = \frac{I}{p_y} - 4 \)Here, \( g_x \) and \( g_y \) are functions representing the Marshallian demand for goods \( x \) and \( y \), respectively, based on their prices \( p_x \) and \( p_y \), and income \( I \).

Introduction Marshallian demand is also said to be ordinary demand. It tells how much a…

What are Paige's Marshallian Demand Functions? ○ga Pa, Py, I = I Py -2; 9y (Pa, Py, 1) = I) Py 2px ○ 9 (Pa, Py, I) = 1/-4; 9y (Pr, Py, I) = Py Py 4px I Py ○ ga (Pa, Py, I) = y; gy (P², Py, I) = 1 / 2 - 4px Py 1 4

What are Paige's Marshallian Demand Functions? ○ga Pa, Py, I = I Py -2; 9y (Pa, Py, 1) = I) Py 2px ○ 9 (Pa, Py, I) = 1/-4; 9y (Pr, Py, I) = Py Py 4px I Py ○ ga (Pa, Py, I) = y; gy (P², Py, I) = 1 / 2 - 4px Py 1 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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