Question
Answer the following questions based on the equations: U = x2y, MUx = 2xy and MUy...
- Answer the following questions based on the equations: U = x2y, MUx = 2xy and MUy = x2
- Determine the demand curves for x and y given px, py and I.
- Based on (a), are x and y normal or inferior goods?
- When px, py and I double then Utility also doubles. Explain if this is this is a true or false statement.
- Now suppose that U = 17x6y3 – 203, MUx = 102x5y3 and MUy = 51x6y2. Do the answers to (a) and (b) change. Explain.
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