## Question

###### Consider the following utility function over goods 1 and 2, plnx1 +3lnx2: (a) [15 points] Derive...

Consider the following utility function over goods 1 and 2, plnx1 +3lnx2: (a) [15 points] Derive the Marshallian demand functions and the indirect utility function. (b) [15 points] Using the indirect utility function that you obtained in part (a), derive the expenditure function from it and then derive the Hicksian demand function for good 1. (c) [10 points] Using the functions you have derived in the above, show that i. the indirect utility function is homogeneous of degree zero in prices and income; ii. the Hicksian demand function for goods 1 is homogeneous of degree zero in prices.

1. Consider the following utility function over goods 1 and 2, (a) [15 points] Derive the Marshallian demand functions and the indirect utility (b) 15 points] Using the indirect utility function that you obtained in part (a), (c) [10 points Using the functions you have derived in the above, show that function derive the expenditure function from it and then derive the Hicksian demand function for good i. the indirect utility function is homogeneous of degree zero in prices and income ii. the Hicksian demand function for goods 1 is homogeneous of degree zero in prices.

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