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Suppose that an individual with income I cares about two goods, X and Y . The prices of the two goods are pX and pY

Suppose that an individual with income I cares about two goods, X and Y . The prices of the two goods are pX and pY . The individual has the utility function

U(X, Y ) = 5 ln X + 3 ln Y.

(a) Derive the Marshallian demands for the two goods.

(b) Find the indirect utility function.

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