Consider the utility function of U(X,Y) = X0.2Y0.4 Derive the Marshallian demand curve for X Derive...

Consider the utility function of U(X,Y) = X^0.2Y^0.4

Derive the Marshallian demand curve for X
Derive the Hicksan demand curve for X
What is the own-price elasticity for X?
What is the income elasticity of X?
What is the price elasticity of X with respect to y (P_y)
If the income level is 120, then what is the P_xthat maximizes total spending
Show that Slutsky equation holds
Show that e_x,px+e_x,py+e_x,I=0. What does it mean?
Show that Engle Aggregation holds. What does it mean?
Show that Cournot Aggregation holds. What does it mean?

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Expert Solution

Rahul Sunny answered 3 weeks ago

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