a. Find the consumer's Hicksian (compensated) and Marshallian (uncompensated) demand functions. b. If M = 100, P = 1 and P = 1, what quantities of X and Y does the consumer buy, and what is his resulting utility c. Now the price of apple rises to P = 1.1, while income and the price of banana are the same as before. What quantities (X and Y) does the consumer buy and what is his resulting utility?

a. Find the consumer's Hicksian (compensated) and Marshallian (uncompensated) demand functions. b. If M = 100, P = 1 and P = 1, what quantities of X and Y does the consumer buy, and what is his resulting utility c. Now the price of apple rises to P = 1.1, while income and the price of banana are the same as before. What quantities (X and Y) does the consumer buy and what is his resulting utility?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter5: Income And Substitution Effects

Section: Chapter Questions

Problem 5.4P

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