Show that the two utility functions given below generate identical demand functions for goods X and Y:

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Show that the two utility functions given below generate identical demand functions for goods X and Y:
a) U(X, Y) = log(X) + log(Y)
b) U(X, Y) = (XY) 0.5

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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Question Posted: Dec 22, 2015 02:18 AM

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Show that the two utility functions given below generate identical demand functions for goods X and Y:

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If two utility functions are equivalent then the demand functions derived from them are identical Two utility functions are equivalent if you can tran...View the full answer

Microeconomics

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