Suppose Ashley has the utility over two goods X and Y as U(X,Y)= XY and the...

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Suppose Ashley has the utility over two goods X and Y as U(X,Y)= XY and the prices and income are pr 3, Pg 5 and I = 50. Let s, and sy be the shares of income spent on good X and good Y, respectively, and let er, and ey, be the income elasticities of demand for goods X and Y, respectively. Then, Ser+Syey, is equal to (a) 2 (b) 1 (c) 0 (d) -1 (e) Not enough information Suppose Ashley has the utility over two goods X and Y as U(X,Y)= XY and the prices and income are pr 3, Pg 5 and I = 50. Let s, and sy be the shares of income spent on good X and good Y, respectively, and let er, and ey, be the income elasticities of demand for goods X and Y, respectively. Then, Ser+Syey, is equal to (a) 2 (b) 1 (c) 0 (d) -1 (e) Not enough information

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The detailed answer for the above question is provided below To find the value of er sx ey we can u... View the full answer