5. A consumer has the following demand function and budget constraint U(x, y) = (x + 2)(y +1). Px+ P,y = 1, where p, p, are the prices of commodity x and y respectively and I is the income of the consumer. (a) Construct a Marshallian demand function for the consumer. (b) If p. = 2. p, = 4 and I= 68, calculate the quantity demanded x and y and hence, his utility U(x, y). (c) Estimate the Utility of our consumer if he becomes poorer by a coedi

Microeconomics A Contemporary Intro
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Chapter6: Consumer Choice And Demand
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5. A consumer has the following demand function and budget constraint U(x, y) = (x + 2)(y +1).
Px+ P,y = 1, where p, p, are the prices of commodity x and y respectively and I is the income of
the consumer.
(a) Construct a Marshallian demand function for the consumer.
(b) If p. = 2. p, = 4 and I= 68, calculate the quantity demanded x and y and hence, his utility
U(x, y).
(c) Estimate the Utility of our consumer if he becomes poorer by a coedi
Transcribed Image Text:5. A consumer has the following demand function and budget constraint U(x, y) = (x + 2)(y +1). Px+ P,y = 1, where p, p, are the prices of commodity x and y respectively and I is the income of the consumer. (a) Construct a Marshallian demand function for the consumer. (b) If p. = 2. p, = 4 and I= 68, calculate the quantity demanded x and y and hence, his utility U(x, y). (c) Estimate the Utility of our consumer if he becomes poorer by a coedi
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