Question: A consumer has preferences over 2 goods represented by the utility function: u(x,y)=min{x,y} The agent is endowed with positive amounts of goods x and y,
A consumer has preferences over 2 goods represented by the utility function:
u(x,y)=min{x,y}
The agent is endowed with positive amounts of goods x and y, endowments (ex ey), respectively and faces prices px, py
-Now assume that e(x,y)=(0,0). Solve for the Hicksian demand for goods x and y and the corresponding expenditure function for a utility level of u and price px
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