Question: let the utility function be : U = f(x,y) = 7x a y 1-a With a budget constraint given by: p x =6 and p

let the utility function be : U = f(x,y) = 7x^ay^1-a With a budget constraint given by: p_x=6 and p_y=3

let R be the revenue R= 6x + 3y a) Determine the Marshallian demand functions b) Calculate the equilibrium quantity and price, as well as the consumer surplus.

suppose that the price of the good Y increases to 5 dollars instead of 3. c) Determine the equilibrium quantity and price, as well as the consumer surplus. d) Using the Hicks method, decompose the total effect and substitution effect and revenue. is this good a normal good ? e) Calculate the equivalent and compensating variations.

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