Obtain the marshallian demand functions for goods

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Reference no: EM132198040

Question: A consumer has utility U(X,Y) = X1/3 Y1/2 and budget constraint PxX + PyY = I .

(a) Obtain the Marshallian demand functions for goods X and Y.

(b) Compute the indirect utility function and the expenditure function for this case.

(c) Use the expenditure function calculated in part (b) together with Shephard's lemma to compute the compensated demand function for good X.

(d) Describe how the compensated demand curve for X is shifted by changes in income or by changes in the price of the other good.

(e) Use the results from part (c) together with the uncompensated demand function for good X to show that the Slutsky equation holds for this case.

Reference no: EM132198040

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