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Given U(q1, q2) = q12/3q21/3. Budget constraint Y = p1(q1) + p2q2. Solve for Marshallian demand...

Given U(q1, q2) = q12/3q21/3. Budget constraint Y = p1(q1) + p2q2.

Solve for Marshallian demand and price.

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Homework Answers

Answer #1

Step by step solution is provided in the pic attached here.

Q1=2/3 * m/p1 . Solving for p1 we get p1=2/3.m/Q1

Q2=1/3* m/p2. Solving for p2 we get p2= 1/3*m/Q2

Please cross check your question.Because we don't have to determine prices in these types of questions.Prices are simple given and customer doesn't have any control over them.Maybe we have to find price elasticity.

If you have any doubt , feel free to ask.

Don't forget to thumbs up , if you like the solution.

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