Suppose a person has the following utility function; u(x,y,z) = x+ yz and the total income...

 

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Suppose a person has the following utility function; u(x,y,z) = x+ yz and the total income y xpx + ypy + zpz What are the values of income (y) and prices (pr.py.pz) will be when a person's demand strictly positive quantity of good a? QUESTION 2 A person has a direct utility function as follows: (10 marks) u(x,, x) = 1+% a) Find the expenditure function and Hicksian demand functions for both goods. QUESTION 3 (BONUS MARKS) (15 marks) Explain the differences between a(p.m) and r(p,u). (5 marks) Suppose a person has the following utility function; u(x,y,z) = x+ yz and the total income y xpx + ypy + zpz What are the values of income (y) and prices (pr.py.pz) will be when a person's demand strictly positive quantity of good a? QUESTION 2 A person has a direct utility function as follows: (10 marks) u(x,, x) = 1+% a) Find the expenditure function and Hicksian demand functions for both goods. QUESTION 3 (BONUS MARKS) (15 marks) Explain the differences between a(p.m) and r(p,u). (5 marks)