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Given the CES utility function U(x,y)=x^/+y^/ Show that the rst-order conditions for a constrained utility maximum with this function require individuals to choose goods in
Given the CES utility function U(x,y)=x^/+y^/
Show that the rst-order conditions for a constrained utility maximum with this function require individuals to choose goods in the proportion x/y=(p_xp_y )^(1((-1)))
Derive the indirect utility and expenditure functions for this case and check your results by describing the homogeneity properties of the functions you calculated.
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