Economic Theory and Policy 2 (EPT3872) Test 1: 19 August 2022 Instructor: Dr C. Dzingirai a) John has insatiable craving for tots of Double Molt whisky with more years of maturity. His two most favourite wines are Glenfiddich (G) and Blue Label John Walker (B) with maturity one-hundred years. A tot of G cost N$100 while that of B cost N$40 and he has a budget for these wines of N$3000. His utility function is U(G, B) = G2/3B1/3. Using the expenditure minimisation approach, find: 1) The Hicksian or compensated demand function of G and B [8 marks] ii) Expenditure function [3 marks] iii) The indirect utility function [3 marks] iv) Marshallian or uncompensated demand functions [6 marks]