d. the expendeiture function Answer: Equation 8 represents the Expenditure Function: E-2VVP:P2- 2P. (8) e. Use your answers to a and d to derive the Hicksian demand functions for x and y. Compare these t answers to c. Explain what you are doing. Answer: By using Shepard Lemma, Equations 9 and equation 10 represent the Hicksian (Compensated) Demar Function for x and y, respectively: ƏE / ƏPI - x ƏE / ƏP2 = y* x- VVP:/ Pi-2 (9) ... ya- VVP: / P2 (10) ... f. Use your answers to b and c to derive the Marshallian demand functions. Compare these to you for a. Explain what vou are doing.

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Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.