Question

3. Lady Marchmain has the following utility function over bread (b) and housing (h): Let Y denote Lady Marchmain's total income; let Po denote the price of bread; and let Ph denote the price of housing. a. Solve for Lady Marchmain's Marshallian demand functions for bread and for housing. b. Do Lady Marchmain's demand functions satisfy the law of demand? 4. Sebastian Flyte has the following utility function over consumption today (c) and consumption tomorrow (c2): U(ci,2)In(ci)+PIn(c2) where 0B

All you need to worry about is solving for the Marshallian Demand Functions for both questions. I'm okay w/ deriving MDFs for Cobb-Douglas functions and Leontief functions, but #3 (Quasilinear) and #4 (Linear) I struggle with. Explain the steps if possible

Answer 1

しh MU MUn Now, Ms- h 2 h-玄 deirease and

CI C2 MC2 C, P2