# Suppose David spends his income (I) on two goods, x and y , whose market prices are p x and p y , respectively. His preferences are represented by the utility function u ( x;y )...

**osaixo**

Suppose David spends his income (I) on two goods,

x

and

y

, whose market

prices are

p

x

and

p

y

, respectively. His preferences are represented by the utility

function

u

(

x;y

) =

lnx

+ 2

lny

(

MU

x

= 1

=x;MU

y

= 2

=y

).

a. Derive his demand functions for

x

and

y

. Are they homogeneous in

income and prices?

b. Assuming

I

= $60 and

p

x

= $1

, graph his demand curve for

y

.

c. Repeat part (b) for the case in which

p

x

=

$2

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### Suppose David spends his income (I) on two goods, x and y , whose market prices are p x and p y , respectively. His preferences are represented by the utility function u ( x;y )...

NOT RATEDSuppose David spends his income (I) on two goods, x and y , whose market prices are p x and p y , respectively. His preferences are represented by the utility function u ( x;y ) …

8 years ago