In: Economics
Suppose the utility function for goods q1 and q2 is given by U(q1, q2) = q1q2 + q2 6 (a) Calculate the uncompensated (Marshallian) demand functions for q1 and q2 2 (b) Describe how the uncompensated demand curves for q1 and q2 are shifted by changes in income (Y) or the price of the other good. 3 (c) Calculate the expenditure function for q1 and q2 such that minimum expenditure = E(p1, p2, U) 4 (d) Use the expenditure function calculated in part (c) to compute the compensated demand (Hicksian) functions for goods q1 and q2. 2 (e) Describe how the compensated demand curves for q1 and q2 are shifted by changes in income (Y) or by changes in the price of the other good