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Which of the following elasticities can be generated by a Marshallian demand function 9a (Pa, Py, I) if the good a is inferior but not a giffen good and good r and good y are gross substitutes?

Which of the following elasticities can be generated by a Marshallian demand function 9a (Pa, Py, I) if the good a is inferior but not a giffen good and good r and good y are gross substitutes?

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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Which of the following elasticities can be generated by a Marshallian demand function ga (Pa, Py, I) if the good r is inferior but not a giffen good and good z and good y are gross substitutes? (a) er.p = -0.15, (b) er.pr -0.25, = (c) €x.pz (d) er.p = 0.15, (e) ezpz = -0.25, = = 0.5, (a) -1 (b) -1/2 (c) 0 (d) 1/2 (e) 1 еx,py ex.py ex.py = -0.33, Crpy = 0.15, ex.py = 0.15, erl= -0.15 -0.25, ex, I = -0.25 ex,1 = -0.17 Cr,l = 0.15 = 3 = 0.75, ex,1 = -0.5 If an individual has the following utility function, U(x, y) = ln(x)+ln(y), then 2e1px + er.pyer is equal to:
Transcribed Image Text:Which of the following elasticities can be generated by a Marshallian demand function ga (Pa, Py, I) if the good r is inferior but not a giffen good and good z and good y are gross substitutes? (a) er.p = -0.15, (b) er.pr -0.25, = (c) €x.pz (d) er.p = 0.15, (e) ezpz = -0.25, = = 0.5, (a) -1 (b) -1/2 (c) 0 (d) 1/2 (e) 1 еx,py ex.py ex.py = -0.33, Crpy = 0.15, ex.py = 0.15, erl= -0.15 -0.25, ex, I = -0.25 ex,1 = -0.17 Cr,l = 0.15 = 3 = 0.75, ex,1 = -0.5 If an individual has the following utility function, U(x, y) = ln(x)+ln(y), then 2e1px + er.pyer is equal to:
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