Answer to Question #62561 in Microeconomics for Blay
a consumer utility function is u=√EF. Find the marshalian demand function for E and F, find the compensated demand function. now let the budget be m=100. prices are 1,1. what are the demand quantities? what is the utility level? Let the price of F rise to 2. what are the demand quantities? what is the utility level. What is the income compensation necessary to put the consumer back to his original utility level after the price change?. Assume the utility function is u= lnE + lnF. How does this new utility function change your results from the beginning?
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