Question: Consider the following utility function: u(x, y) = x^1/2 + y^1/2 (a) Derive the optimal utility maximizing demands for x as a function of prices

Consider the following utility function: u(x, y) = x^1/2 + y^1/2

(a) Derive the optimal utility maximizing demands for x as a function of prices and income.

(b) Find the formula for price elasticity of demand for x.

(c) Find the formula for the income elasticity of demand for x.

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