Question: consider the following indirect utility function a. show that the indirect utility function is homogeneous of degree 0 in price and income. b. derive the

consider the following indirect utility function

consider the following indirect utility function a. show that the indirect utility

a. show that the indirect utility function is homogeneous of degree 0 in price and income.

b. derive the expenditure function

c. show that the expenditure function is homogeneous of degree 1 in prices.

d. derive the Marshallian demand function for good 2

e. derive the Hicksian demand function for goods 1 and 2

f. show/describe/interpret how the compensated demand functions for good 1 and for good 2 are shifted by a change in the price of the other good, noting the symmetry.

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