Answered: 2. Consider a consumer with utility…

2. Consider a consumer with utility function u(x1, 22. 23) for three goods, where the cross- price elasticities are null. Show that the ratio of substitution effects 23 is equal to 513

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.3P

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2. Consider a consumer with utility function u(x1, 22, 23) for three goods, where the cross-
price elasticities are null. Show that the ratio of substitution effects 23 is equal to
513

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