Question: 3 Measuring welfare changes An agent has utility function U(:c) = min{x1,x2,x3} over X = R1, and wealth in. 1. Find the Marshallian demand functions

3 Measuring welfare changes An agent has utility function U(:c) = min{x1,x2,x3} over X = R1, and wealth in. 1. Find the Marshallian demand functions for each good. What is the agent's indirect utility function? 2. Suppose prices are initially p1 = 1,102 = 2, p3 = 3, and all prices triplet Calculate the compensating and equivalent variations. 3. Suppose all prices are initially 2, and the price of good 1 drops by 50%. Calculate the compensating and equivalent variations and the change in consumer surplus

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