This preview shows page 1. Sign up to view the full content.
Unformatted text preview: roses? 2) Suppose that an individual has the following utility function: U(X,Y) = X (1 + Y) a) Find the uncompensated (marshallian) demand for X and Y. b) Are X and Y normal or inferior goods? c) Find the expenditure function. d) What is the minimum expenditure necessary to achieve a utility level of U= 72 with Px=4 and P Y =2?. 3) A consumer has the following Utility function: U = X 1/2 + Y 1/2 a) Find the compensated demand for X and Y b) Find the expenditure function c) Find the uncompensated demand for X and Y. d) Show that the Slutsky equation holds...
View Full Document
- Spring '08