Consider the utility function of U(X,Y) =
X0.2Y0.4
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
(Py)
If the income level is 120, then what is the Pxthat
maximizes total spending
Show that Slutsky equation holds
Show that
ex,px+ex,py+ex,I=0. What
does it mean?
Show that Engle Aggregation holds. What does it...