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solve for A please Peter's consumption over bagels (b) and tea (t) is represented by U(b,t) = b0.5 His marshallian demands are given by: bin
solve for A please
Peter's consumption over bagels (b) and tea (t) is represented by U(b,t) = b0.5 His marshallian demands are given by: bin PI pol po(p. + p) Pt(po + p) (a) Without solving the expenditure minimization problem. Recover the Hicksian de- mands and the expenditure function from the Mashallian demands and the indirect utility function. (b) Using the Slutsky equation find the total, income and substitution effect on bagels for a small increase in po when po = 1, P1 = 1, and I = 12 1 (C) Find the compensated own price elasticity of demand for bagels (e.pl) when pb = 1, pt = 1, and I = 12. (d) Find the compensated cross-price elasticity of demand for bagels (e.pd) when po = 1, P = 1, and I = 12Step by Step Solution
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