Problem Set 5

Problem Set 5 - y ? 2. Suppose Beth has a utility function...

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UCLA Economics 11 – Fall 2010 Professor Mazzocco Problem Set 5 Due by November 4 before 9:00am in the box located outside room 2221E, Bunche Hall 1. Alex eats only apples (X) and oranges (Y) . His utility function is U(X,Y) = (x .5 + y .5 ) 2 . a. Find the Marshallian and Hicksian demand functions. b. Find the indirect utility and expenditure functions. c. Find the substitution and income effects on x for an increase in p x . d. What are the substitution and income effects on x for an increase in p
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Unformatted text preview: y ? 2. Suppose Beth has a utility function U(x,y,) = x 1/3 y 2/3 . a. Find the income elasticity of demand for x. Find the income elasticity of demand for y. b. What is the elasticity of demand for x with respect to the price of x? What is the elasticity of demand for x with respect to the price of y? c. Find the compensated elasticity of demand for x with respect to p x ....
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This note was uploaded on 11/09/2011 for the course ECON 11 taught by Professor Cunningham during the Fall '08 term at UCLA.

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