Calculate minimum income to ensure positive utility

Reference no: EM1315916

a. Give the utility function U(x, y) = (x-4)^1/2(y-2)-^1/2, what is the minimum income needed to ensure positive utility?

b. Assuming actual income l> 1^st, find the demand functions for x and y.

c. What happens to the income share devoted to x as income rises?

Reference no: EM1315916

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