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1 2. Consider the following utility function: u(x, y) = xE + 315. (a) Derive the optimal utility maximizing demands for x as a function

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1 2. Consider the following utility function: u(x, y) = xE + 315. (a) Derive the optimal utility maximizing demands for x as a function of prices and income. (b) Find the formula for price elasticity of demand for x. (c) Find the formula for the income elasticity of demand for x

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