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(a) Derive the Marshalian demand functions for the following utility function:
u(x1,x2,x3) = x1 + δ ln(x2) x1 ≥ 0, x2 ≥ 0
Does one need to consider the issue of "corner solutions" here?
(b) Derive the Hicksian demand functions and the expenditure function for the following utility function:
u(x1,x2,x3) =min {√x1, 2√x2, 4√x3} x1 ≥ 0, x2 ≥ 0, x3 ≥ 0
Using the expenditure function and the Hicksian demand functions that you obtained, derive the indirect utility function and the Marshalian demand function for good 1.
Solve by factorization X 2 +(a/a+b + a+b/a)x+1 = 0 X 2 +(a/a+b + a+b/a)x+1 => X 2 +(a/a+b x a+b/ax + a/a+b .a+b/a) => X[x+a/a+b] +a+b/a[a+a*a+b]= 0 => X= -a
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Find the Quadratic polynomial whose sum and product of zeros are √2 + 1, 1/ √2 + 1 Ans: sum = 2 √2 Product = 1 Q.P = X 2 - (sum) x + Product ∴ x 2 - (2 √2 )
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