Given the utility function and budjet constraint. Z=3X1+X1X2+2X2 , M=P1X1 + P2X2. 1. Obtain Marshallian demand curve equations. 2. Estimate the demand for X1 at P1 =2,4, P2 =4 and M=60. 3. Estimate the demand for X2 at P2 =2,4, P1=4 and M=60.

Given the utility function and budjet constraint. Z=3X1+X1X2+2X2 , M=P1X1 + P2X2. 1. Obtain Marshallian demand curve equations. 2. Estimate the demand for X1 at P1 =2,4, P2 =4 and M=60. 3. Estimate the demand for X2 at P2 =2,4, P1=4 and M=60.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.8P

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Given the utility function and budjet constraint.

Z=3X1+X1X2+2X2 , M=P1X1 + P2X2.

1. Obtain Marshallian demand curve equations.

2. Estimate the demand for X1 at P1 =2,4, P2 =4 and M=60.

3. Estimate the demand for X2 at P2 =2,4, P1=4 and M=60.

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