Previous | Next | Chapter 1, Consumer Theory
Topic: Exercises 1.25 and 1.27
Conf: Chapter 1, Consumer Theory, Msg: 1583
From: Joon Fong Wong (art70329@nus.edu.sg)
Date: 10/23/2000 09:33 AM
Consumer Theory Joon Fong Wong jfbox art70329@nus.edu.sg
I think I have got a different 2nd edition of the book "Advanced Microeconomic Theory.
Anyway, I have some questions with regards to the exercises at the back of chapter 3.
Exercise 3.25
We were given the utility function:
u(x1,x2) = x1^a x2^(1/2)-a
where the sign ^ means power.
(a) What restrictions must be set on the value of parameter a?
Exercise 3.27
Given utility function u(x1,x2)= max[ax1,ax2]+ min[x1,x2]
Derive the Marshallian demand function.
May I ask for the hints to solve the above question..
Thank you.