Question: . Suppose the utility function for goods q1 and q2 is given by U(q1, q2) = q1q2 + q2 6 (a) Calculate the uncompensated (Marshallian)

. Suppose the utility function for goods q1 and q2 is given by U(q1, q2) = q1q2 + q2 6

(a) Calculate the uncompensated (Marshallian) demand functions for q1 and q2 2

(b) Describe how the uncompensated demand curves for q1 and q2 are shifted by changes in income (Y) or the price of the other good. 3

(c) Calculate the expenditure function for q1 and q2 such that minimum expenditure = E(p1, p2, U) 4

(d) Use the expenditure function calculated in part (c) to compute the compensated demand (Hicksian) functions for goods q1 and q2. 2

(e) Describe how the compensated demand curves for q1 and q2 are shifted by changes in income (Y) or by changes in the price of the other good

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