d. the expendeiture functionAnswer:Equation 8 represents the Expenditure Function:E- 2VVP:P2- 2P:(8)e. Use your answers to a and d to derive the Hicksian demand functions for x and y. Compare these to youranswers to c. Explain what you are doing.Answer:By using Shepard Lemma, Equations 9 and equation 10 represent the Hicksian (Compensated) DemandFunction for x and y, respectively:ƏE / ƏP1ƏE / ƏP2 = yªx- VVP2/ Pi -2ya- VVP1/ P2(10)f. Use your answers to b and e to derive the Marshallian demand functions. Compare these to your answersfor a. Explain what you are doing. 1. Duality (Part 3) [Answers a-f Provided by Bartleby Experts]Let u(x,y)=(x+2)y. Find the followingg.Write the Slutsky equation for this problem.a. the Marshallian demand functions for x and yAnswer:Equations 3 and equation 4 represent the Marshallian demand function:x(px, py, m) - m2px-1у - рхрут2рх-1+2у-m2py+pxpy(4)b.the indirect utility functionAnswerEquation represents the Indirect Utility Function (IUF):V = (m + 2P1)² / 4P1P2(5)с.the compensated (Hicksian) demand functions for x and yAnswer:Equations 6 and equation 7 represent the Compensated (Hicksian) Demand Function for x and y,respectively:x- VVP2/ P1 –2ye = VVP1/ P2

*Answer: Given:- u(x,y)=(x+2)y Budget line will become:- P1x+P2y=m P1=Price of x P2=Price of y

d. the expendeiture function Answer: Equation 8 represents the Expenditure Function: E-2VVP:P2- 2P. (8) e. Use your answers to a and d to derive the Hicksian demand functions for x and y. Compare these t answers to c. Explain what you are doing. Answer: By using Shepard Lemma, Equations 9 and equation 10 represent the Hicksian (Compensated) Demar Function for x and y, respectively: ƏE / ƏPI - x ƏE / ƏP2 = y* x- VVP:/ Pi-2 (9) ... ya- VVP: / P2 (10) ... f. Use your answers to b and c to derive the Marshallian demand functions. Compare these to you for a. Explain what vou are doing.

d. the expendeiture function Answer: Equation 8 represents the Expenditure Function: E-2VVP:P2- 2P. (8) e. Use your answers to a and d to derive the Hicksian demand functions for x and y. Compare these t answers to c. Explain what you are doing. Answer: By using Shepard Lemma, Equations 9 and equation 10 represent the Hicksian (Compensated) Demar Function for x and y, respectively: ƏE / ƏPI - x ƏE / ƏP2 = y* x- VVP:/ Pi-2 (9) ... ya- VVP: / P2 (10) ... f. Use your answers to b and c to derive the Marshallian demand functions. Compare these to you for a. Explain what vou are doing.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.1P

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