Hrry and sally have the following preferencesuhx y lnx

Assignment Help Econometrics

Reference no: EM13377872

Harry and Sally have the following preferences:

uh(x; y) = ln(x) + ln(y)

us(x; y) = ln(x) + y

a. What is Harry's price elasticity of demand for good x, denoted "x;px ?

From Harry's perspective, is x ordinary, Gien, or neither?

b. What is Harry's income elasticity of demand for good x, denoted "x;I?

From Harry's perspective, is x normal, inferior, or neither?

c. What is Harry's cross-price elasticity of demand for good x, denoted "x;py ?

From Harry's perspective, are x and y complements, substitutes, or neither?

d. What is Sally's price elasticity of demand for good x, denoted "x;px?

From Sally's perspective, is x ordinary, Gien, or neither?

e. What is Sally's income elasticity of demand for good x, denoted "x;I?

From Sally's perspective, is x normal, inferior, or neither?

f. What is Sally's cross-price elasticity of demand for good x, denoted "x;py?

From Sally's perspective, are x and y complements, substitutes, or neither?

Reference no: EM13377872

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