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What is the money metric utility function in this case.

What is the money metric utility function in this case.

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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Could you please help me only with the last part-money metric utility function? Thank you!
Consider a utility maximizing consumer who generates utility according to the following utility function: U=In(k)+s where k is the quantity of masks consumed and s is the quantity of hand sanitizer consumed. Let the price of k, the price of s, and income be noted as pk Ps, and M, respectively. Set up the utility maximizing Lagrangian and derive the Marshallian demand functions. What is the quantity demand of k and s if income = $120 pk = $2 and ps = $12? Derive the indirect utility function and the expenditure function. Use Shephard's Lemma to derive the compensated (Hicksian) demand curves. What is the money metric utility function in this case.
Transcribed Image Text:Consider a utility maximizing consumer who generates utility according to the following utility function: U=In(k)+s where k is the quantity of masks consumed and s is the quantity of hand sanitizer consumed. Let the price of k, the price of s, and income be noted as pk Ps, and M, respectively. Set up the utility maximizing Lagrangian and derive the Marshallian demand functions. What is the quantity demand of k and s if income = $120 pk = $2 and ps = $12? Derive the indirect utility function and the expenditure function. Use Shephard's Lemma to derive the compensated (Hicksian) demand curves. What is the money metric utility function in this case.
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