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Consider the following function describing the utility of a consumer: U(x 1 , x 2 , x 3 ) = a 1 *ln(x 1 )
Consider the following function describing the utility of a consumer:
U(x1, x2, x3) = a1*ln(x1) + a2*ln(x2) + a3*ln(x3), where ln = natural logarithm and a1, a2, a3 constants
a. Pose the primal problem (using Langrange's method), obtaining the Marshallian demands for each good and the individual's indirect utility function.
b. From the results obtained from question a., find the minimum expenditure function and the Hicksian demands.
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