Question

. Consider the following utility function over goods 1 and 2, u (ri, 2)- In a 3 ln r2. (a) [15 points] Derive the Marshallian demand functions and the indirect utility function (b) [15 points] Using the indirect utility function that you obtained in part (a), derive the expenditure function from it and then derive the Hicksian demand function for good 1. (c) [10 points] Using the functions you have derived in the above, show that i. the indirect utility function is homogeneous of degree zero in prices and ncome i. the Hicksian demand function for goods 1 is homogeneous of degree zero in prices

Answer 1

Answer:

Consumer's objective is to maximize utility subject to expenditure function, from which we can get the marshallian demand function.

an is 1 12 "2 a A an d M 3기-는g. 뉴 2 M