U(x, y) = x^0.5y^0.5 Write the maximization Problem Solve to get Marshallian demand functions for x and y Get Hicksian demand function for x Get Indirect Utility function Get price effect, substitution effect, income effect using Slutsky equation (calculus method) Prove that the Slutsky equation holds.

U(x, y) = x^0.5y^0.5 Write the maximization Problem Solve to get Marshallian demand functions for x and y Get Hicksian demand function for x Get Indirect Utility function Get price effect, substitution effect, income effect using Slutsky equation (calculus method) Prove that the Slutsky equation holds.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.8P

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