Question: 5 . 5 Suppose the utility function for goods x and y is given by utility = U ( x , y ) = x
Suppose the utility function for goods and is given by
utility
a Calculate the uncompensated Marshallian demand functions for and and describe how the demand curves for and are shifted by changes in I or the price of the other good.
b Calculate the expenditure function for and
c Use the expenditure function calculated in part b to compute the compensated demand functions for goods and Describe how the compensated demand curves for and are shifted by changes in income or by changes in the price of the other good.
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