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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.
sin(2x+x)=sin2x.cosx+cos2x.sinx =2sinxcosx.cosx+(-2sin^2x)sinx =2sinxcos^2+sinx-2sin^3x =sinx(2cos^2x+1)-2sin^3x =sinx(2-2sin^2x+1)-2sin^3
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