Derivation of marshillian demand function

Reference no: EM1315960

Imagine a person's utility function over two goods, X and Y, where Y represents dollars. Specifically, assume a Cobb-Douglas utility function:

U(X, Y) = X^a Y^(1-a) , where 0

Let the person\'s budget be B and feasible amounts of consumption must satisfy:

B=pX+Y

Where p is the unit price of X and the price of Y is set to 1.

Reference no: EM1315960

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