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A consumer has a utility function of the Cobb-Douglas form U(x1, 12) = 1, -0.8 0.2 a) Find the consumer's Marshallian demand function for x]
A consumer has a utility function of the Cobb-Douglas form U(x1, 12) = 1, -0.8 0.2 a) Find the consumer's Marshallian demand function for x] and 2. What are the own price. cross price, and income elasticities for these two goods? b) Using the the Marshallian demand you found in a) solve for this consumer's indirect utility function V(P1, P2, I). Find the consumer's marginal utility of income. c) Verify Roy's identity for both goods. d) Reformulate and solve the expenditure minimization problem of this consumer to find the Hicksian demand functions. What are the own price and cross price elasticities? Lastly, find the consumer's expenditure function
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