Question: The consumer has the following utility function for goods x and y : U ( x , y ) = x 3 y 2 .
The consumer has the following utility function for goods x and : Let the price of x be given by the price of y be given by and income be given by I.
a Derive the consumer's demand function for good x given this utility function
and budget constraint, using the Lagrange Multiplier Method.
b Is good normal or inferior? How can you tell?
For parts c and d let the price of x be
c Draw the consumer's Engel curve for good x make sure to label axes as is the norm with Engel curves
d If his income is equal to how much of good will he demand?
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