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A consumer has a generic utility function, u(21, 22), where du/dzi > 0 and 22u/ar} 0 (e) How would your answer to part (d) change
A consumer has a generic utility function, u(21, 22), where du/dzi > 0 and 22u/ar} 0 (e) How would your answer to part (d) change if you were presented with the consumer's utility-maximisation problem and asked to determine the sign of Oxi/ap? Explain in- tuitively why it is possible to determine the sign of the partial derivative of the Hicksian demand function, but not that of the Marshallian demand function, x1, for an own-price change. A consumer has a generic utility function, u(21, 22), where du/dzi > 0 and 22u/ar} 0 (e) How would your answer to part (d) change if you were presented with the consumer's utility-maximisation problem and asked to determine the sign of Oxi/ap? Explain in- tuitively why it is possible to determine the sign of the partial derivative of the Hicksian demand function, but not that of the Marshallian demand function, x1, for an own-price change
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