Income elasticities of demand

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Simon consumes pizza (x) and cola (y). His utility function is  U(x,y)= √x √y.

a. Suppose Px= 9, Py= 16, and Income M. Find the utility maximizing quantities of x and y.

b. Find the demand function of x and y.

c. What are the price elasticities of demand for x and y? What are the income elasticities of demand for x and y?

d. What happens to Simon's utility maximizing bundle if all prices and his income increase by the same percentage?

e. Jeff's utility function for x and y as. Find Jeff's demand function for x and y. Derive market demand curve from each demand curve of Jeff and Simon.

Reference no: EM131075961

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