boomerjm
boomerjm
05.03.2020 • 
Business

3. Jeff considers one banana to be equivalent to three apples. a. Let a denote apples and b denote bananas. Write down a utility function U(a, b) that represents Jeff’s preferences over apples and bananas. b. Jeff has an income of Y and the prices of apples and bananas are pa and pb, respectively. Derive Jeff’s ordinary Marshallian demand functions for apples and bananas. Do these demand functions satisfy the law of demand? c. Derive Jeff’s Hicksian demand functions for apples and bananas

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