Question: Please solve all the questions: E (Expenditure Function) the values are given. Uncompensated Demand Compensated Demand Please show all the work. Do not copy from

Please solve all the questions: E (Expenditure Function) the values are

given. Uncompensated Demand Compensated Demand Please show all the work. Do not

Please solve all the questions:

E (Expenditure Function) the values are given.

Uncompensated Demand

Compensated Demand

Please show all the work. Do not copy from other solutions. Thanks.

Rui's utility function is U=X+25XZ+Z Let the price of good X be px, the price of good Z be normalized to $100 and U be her level of well-being What is her expenditure function Rul's expenditure function (E) is E (Property format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts E Derive her uncompensated demand curve for X. Let Y be her income. Rui's uncompensated demand curve for good X is (Properly format your expression using the tools in the palette) Derive her compensated demand curve for X Ruis compensated demand curve for good X is X= (Property format your expression using the tools in the palette) 3 Styles 5 To find the expenditure function, substitute the optimal values for good X and good Z into E = PxX+Z The optimal values are : I V (px - 1)(U+0.04) X= -0.04. 5 Px(U+0.04) -0.04 Z= 5 Rui's utility function is U=X+25XZ+Z Let the price of good X be px, the price of good Z be normalized to $100 and U be her level of well-being What is her expenditure function Rul's expenditure function (E) is E (Property format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts E Derive her uncompensated demand curve for X. Let Y be her income. Rui's uncompensated demand curve for good X is (Properly format your expression using the tools in the palette) Derive her compensated demand curve for X Ruis compensated demand curve for good X is X= (Property format your expression using the tools in the palette) 3 Styles 5 To find the expenditure function, substitute the optimal values for good X and good Z into E = PxX+Z The optimal values are : I V (px - 1)(U+0.04) X= -0.04. 5 Px(U+0.04) -0.04 Z= 5

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