Clara consumes two goods x and y. Suppose her utility function is given as

U(x,y)=min{3x,4y}

The prices of the two goods are P_x for good x and P_y for good y. If her monthly income is $M,

1. Derive her uncompensated demand function for good x
2. Derive her uncompensated demand function for good y
3. Derive the cross-price effects and show that the two goods are complementary goods.

Answer rating: 100% (QA)

To derive Claras uncompensated demand functions for goods x and y we need to determine the quantitie... View the full answer