a)Find the indirect Utility function V(I, Px, Pv)[replace the constant term (which will be a complicated function of a) with K. 

b)Calculate the expenditure function E(U, Px, Pv). 

c)Now calculate the compensated demand curves. 

d)Use the Slutsky equation

U = x^a y^1-a . 

 

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Heres the solution for the consumer problem with the CobbDouglas utility function a Indirect Utility Function VI Px Pv We can find the indirect utilit... View the full answer