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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.
3 1/2 x 1 4/7 x 1 1/3
Let f : R 3 → R be de?ned by: f(x, y, z) = xy 2 + x 3 z 4 + y 5 z 6 a) Compute ~ ∇f(x, y, z) , and evaluate ~ ∇f(2, 1, 1) . b) Brie?y
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12.+12+
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