Question: s ) 2 . A person consumes two goods x and y . Let px and py be the prices of these two goods and

s)2. A person consumes two goods x and y. Let px and py be the prices of these two goods and assume that py =1. The persons indirect utility function is , where a and b are positive constants.
a) Derive the Marshallian demand function for x, using Roys identity. (2 points)
b) Find the direct utility function. (8 points)
c) Derive the Marshallian demand by maximizing the direct utility function. Is the result consistent with what you found in a)?(6 points

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