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.

Problem 1 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) = 5InX + 3In Y. (a) Derive the Marshallian demands for the two goods. (b) Find the indirect utility function