Question: please answer g. [20 marks] (a) Consider the expenditure function E *(Px, P3,, [7) = Pxo'SPyO'SU, where [J' > 0. Suppose the price of good

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g. [20 marks] (a) Consider the expenditure function E *(Px, P3,, [7) = Pxo'SPyO'SU, where [J' > 0. Suppose the price of good 36 increases by 50%, nd the percentage increase in the minimum expenditure of obtaining a given utility, [7. Do not choose numbers for Px and P3:- (b) In general, for any given percentage increase in Px, the corresponding percentage increase in the minimum ex enditure, E * P , P , U , is smaller than the ercenta e increase in P . Carefull P x y P g x y explain the economic intuition for this result

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