Suppose that an individual consumes two goods X and Y, and his direct utility function is given by: U(X, Y)- X +Y"s. a) Derive the Marshallian demand functions for X. b) Derive the Marshallian income elasticity of good X.

Microeconomic Theory
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ISBN:9781337517942
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Chapter4: Utility Maximization And Choice
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Problem 4.8P
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Suppose that an individual consumes two goods X and Y, and his direct utility function is given
by:
U(X, Y) = X" + Y"s.
a) Derive the Marshallian demand functions for X.
b) Derive the Marshallian income elasticity of good X.
Transcribed Image Text:Suppose that an individual consumes two goods X and Y, and his direct utility function is given by: U(X, Y) = X" + Y"s. a) Derive the Marshallian demand functions for X. b) Derive the Marshallian income elasticity of good X.
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