Carefully labeling slopes and intercepts

Reference no: EM13688123

a) Derive demand for each good for the following tastes:
u(x,y)= αlnx + y. (Note to fully specify the demand relationship in this case, you need to watch out for corner solutions.)
MUx = α/x and MUy = 1.
b) Graph the Engel curves for x and y - carefully labeling slopes and intercepts.
c) Is the good x substitute/ complement for good y? Is the good y substitute / compliment for good x?

Reference no: EM13688123

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