A consumer derives his utility by consuming mangoes and oranges according to the following functions U=Xy07...

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A consumer derives his utility by consuming mangoes and oranges according to the following functions U=Xª³y07 where: U = the utility derived by the individual X = the quantity of mangoes consumed Y = the quantity of oranges consumed. If the price of mangoes is P, and that of the oranges is P, and the individual's income is M. i). Derive the ordinary demand function for both goods. ii). Compute the specific optimal quantities of mangoes and oranges given P=Sh.2: P, = sh.3 and income M = sh.300. iii). Find the consumer's INDIRECT UTILITY FUNCTION. iv). Calculate the compensated demand curves for both goods. A consumer derives his utility by consuming mangoes and oranges according to the following functions U=Xª³y07 where: U = the utility derived by the individual X = the quantity of mangoes consumed Y = the quantity of oranges consumed. If the price of mangoes is P, and that of the oranges is P, and the individual's income is M. i). Derive the ordinary demand function for both goods. ii). Compute the specific optimal quantities of mangoes and oranges given P=Sh.2: P, = sh.3 and income M = sh.300. iii). Find the consumer's INDIRECT UTILITY FUNCTION. iv). Calculate the compensated demand curves for both goods.

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i The consumers utility maximization problem must be resolved in subject of their budget constraint ... View the full answer