Question: Find the expenditure function, the Hicksian demand functions, and the Marshallian demand functions corresponding to the indirect utility function V(p, r) = (a1/p1 + a2/p2)r.

Find the expenditure function, the Hicksian demand functions, and the Marshallian demand functions corresponding to the indirect utility function V(p, r) = (a1/p1 + a2/p2)r. Note p is a vector of prices p1 and p2, of goods x1 and x2 , r is income and a1 and a2 are constants. a. (10 pts) Find the expenditure function, the Hicksian demand function and the Marshallian demand function for x1. b. (5 pts) Are the functions obtained in 'a' above homogeneous? If so, of what degree? c. (5 pts) If all prices doubled, how much extra income would be required to compensate the consumer?

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