Question: 3. Explain the difference between a Marshallian Demand Function and a Hicks Compensated Demand Function. 4. Write out the Slutsky equation and illustrate why it

3. Explain the difference between a Marshallian Demand Function and a Hicks Compensated Demand Function.

4. Write out the Slutsky equation and illustrate why it is an identity.

5. For a normal good, draw a Marshallian and Hicks Compensated demand function. Which demand function is more elastic? Explain.

6. For an inferior good, draw a Marshallian and Hicks Compensated demand function. Which demand function is more elastic? Explain.

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