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Topic: Chapter 1, Q1.56, Q1.61
Conf: Chapter 1, Consumer Theory, Msg: 9016
From: Andrea Colabella (andrea_colabella@hotmail.com)
Date: 11/15/2001 02:28 PM
Chapter 1, Q1.56, Q1.61 Andrea Colabella AColabella andrea_colabella@hotmail.com
For q1.61 (a) use the fact that e(p,u) is homogeneous of degree 1 in prices. So you can use Theorem A2.6 and Euler's Theorem to get the result.
For point (b), find out from the Slutsky's equation Hicksian demand, and substitute into the Hick's Third Law. Use logs for findings the demand.