Question: 2) Marvin has a Cobb-Douglas utility function, U= q105 q205, his income is Y = 100, and, initially he faces prices of p1 = 1

2) Marvin has a Cobb-Douglas utility function, U= q105 q205, his

2) Marvin has a Cobb-Douglas utility function, U= q105 q205, his income is Y = 100, and, initially he faces prices of p1 = 1 and p2 = 2. What is Marvin's expenditure function? How would you calculate CV if prices changed? Y Y 91 = 92 2p1 2p2 Y 1/2 Y 1/2 U (q1, 92) = 2 2p1 2p2 E 1/2 1/2 U = E = 20(p1)1/2(p2)1/2

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