Suppose that an individual with income I cares about two goods,X and Y. The price of the two goods is Px and Py. The individualhas the following utility function:

U(X,Y) = X(2+Y)

a) Find the Marshallian(uncompensated) demand for X and Y.

b) Find the Hicksian(compensated) demand for X and Y.

c) What is the minimumexpenditure necessary to achieve a utility level of U = 100 with Px= 5 and Py = 20 ?

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Yusra Anees
Yusra AneesLv10
28 Sep 2019
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