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Consider the following individual utility functions:

Adam Smith: U(x,y) = xy

Jeremy Bentham: U(x,y) = xayb (Cobb-Douglas utility function)

Alfred Marshall: U(x,y) = ln x + ln y

John M. Keynes: U(x,y) = x + yb (Quasi-linear utility function)

Joan Robinson: U(x,y) = aX + bY (linear; perfect substitutes)

Find demand functions for x and y for Smith, Bentham, Marshall, and Keynes. Assume that each man has income I and that the prices of x and y are px and py respectively.

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 Kritika Krishnakumar
Kritika KrishnakumarLv10
28 Sep 2019

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