Question: 5. (15 Points) Suppose the utility function for good x and y is given by U(x,y) = x + Iny. The uncompensated (Marshallian) demand functions

5. (15 Points) Suppose the utility function for good x and

5. (15 Points) Suppose the utility function for good x and y is given by U(x,y) = x + Iny. The uncompensated (Marshallian) demand functions derived from the utility function are; x = (1 - Px)/Px and y = Px/Py. a) Show that Slutsky equation applies to this function for x. b) Show that the elasticity form of Slutsky equation applies to this function for y

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