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Farmer Joe is an apple grower, whose only source of income is his apple crop of A0, which he can sell at the going price
Farmer Joe is an apple grower, whose only source of income is his apple crop of A0, which he can sell at the going price of pa. His utility function depends on the quantities of the only two goods he consumes, apples and bananas, according to U(A,B) = AB. (a) Find Farmer Joe's demand functions for apples and bananas. (b) Find Joe's own- and cross-price elasticities of demand for both A and B
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