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Each week an individual with income m consumes quantities x and y of two goods whose prices are p and q. Her utility function
Each week an individual with income m consumes quantities x and y of two goods whose prices are p and q. Her utility function is U(x, y) = a ln x +lny (a,> 0) which is defined for x, y >0. Find the demand functions. Now suppose the individual works for / hours per week out of an available L hours so that she has (L-1) hours of free time and suppose her utility function is now V (x, y,l) = ln x+ lny+yln(L-l) (ay> 0) which is defined for x, y > 0 and 01 (a + )wL / y ? www
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