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Consider the utility function: u( x1 , x2 ) = 2 x 1 + 2 x 2 a) Find the Marshallian demand function. Use (
Consider the utility function:
u( x1 , x2 ) = 2x1 + 2x2
a) Find the Marshallian demand function. Use ( p1 , p2 ) to denote the exogenous prices of x1 and x2 respectively. Use y to denote the consumer's disposable income.
b) Find the indirect utility function and verify Roy's identity
c) Find the expenditure function
d) Find the Hicksian demand function
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