Question: 4. Avinash has preferences over the 2 consumption goods {3, b} that can be represented by the following utility function: '1 mos Cb) = (a:


4. Avinash has preferences over the 2 consumption goods {3, b} that can be represented by the following utility function: '1 mos Cb) = (a: + (3;); p = 1 U0 E (u, 1) He purchases these goods 'om his income. a. Solve for the IvIarshallian (also known as Walrasian) demands for these preferences. I}. Show that the relative demand function (for good a in terms of good 1)) can be written as a declining function of the relative prices alone and is not a mction of income. c. Solve for the expenditure function for these preferences. {1. Find the Hicksian demand function for both goods. f. Solve for the indirect utility function. g. Use Roy\" 3 identity to solve for the Marshallian demand functions
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