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28 Sep 2019
Consider the following individual utility functions:
Adam Smith: U(x,y) = xy
Jeremy Bentham: U(x,y) = xayb (Cobb-Douglas utility function)
Alfred Marshall: U(x,y) = ln x + ln y
John M. Keynes: U(x,y) = x + yb (Quasi-linear utility function)
Joan Robinson: U(x,y) = aX + bY (linear; perfect substitutes)
Find demand functions for x and y for Smith, Bentham, Marshall, and Keynes. Assume that each man has income I and that the prices of x and y are px and py respectively.
Consider the following individual utility functions:
Adam Smith: U(x,y) = xy
Jeremy Bentham: U(x,y) = xayb (Cobb-Douglas utility function)
Alfred Marshall: U(x,y) = ln x + ln y
John M. Keynes: U(x,y) = x + yb (Quasi-linear utility function)
Joan Robinson: U(x,y) = aX + bY (linear; perfect substitutes)
Find demand functions for x and y for Smith, Bentham, Marshall, and Keynes. Assume that each man has income I and that the prices of x and y are px and py respectively.
Kritika KrishnakumarLv10
28 Sep 2019