Consider the utility function of U(X,Y) = X0

Economics Nov 11, 2020

Consider the utility function of U(X,Y) = X0.2y0.4 1. Derive the Marshallian demand curve for X 2. Derive the Hicksan demand curve for X 3. What is the own-price elasticity for X? 4. What is the income elasticity of X? 5. What is the price elasticity of X with respect to y (Py) 6. If the income level is 120, then what is the Px that maximizes total spending 7. Show that Slutsky equation holds 8. Show that ex,px+ex,py+ex,1=0. What does it mean? 9. Show that Engle Aggregation holds. What does it mean? 10. Show that Cournot Aggregation holds. What does it mean?

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