3 Alia only likes tacos, which she buys from two local restaurants - Alberto's and Roberto's - so let'sdefine good x-Alberto's tacos and good y=Roberto's tacos.U(x, y) = 2x +3ya) Find and write down formally Alia's demand functions x'(px,Py,1) and y (px.Py, I), including forthe threshold case. Can you find a compact way of expressing her indirect utility function?Holding I=$24, Py-$4:b) draw the price consumption curve for x;c) draw the demand curve for x

Given:- U(x,y)=2x+3y I=$24, Py=$4 Please find the images attached below for detailed solution.

Alia only likes tacos, which she buys from two local restaurants - Alberto's and Roberto's - so let's define good x=Alberto's tacos and good y=Roberto's tacos. U(x,y) = 2x +3y a) Find and write down formally Alia's demand functions x (p,Py,1) and y (pz. Py, I), including for the threshold case. Can you find a compact way of expressing her indirect utility function? Holding I=$24, Py=$4: b) draw the price consumption curve for x; c) draw the demand curve for x

Alia only likes tacos, which she buys from two local restaurants - Alberto's and Roberto's - so let's define good x=Alberto's tacos and good y=Roberto's tacos. U(x,y) = 2x +3y a) Find and write down formally Alia's demand functions x (p,Py,1) and y (pz. Py, I), including for the threshold case. Can you find a compact way of expressing her indirect utility function? Holding I=$24, Py=$4: b) draw the price consumption curve for x; c) draw the demand curve for x

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter5: Income And Substitution Effects

Section: Chapter Questions

Problem 5.1P

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