Suppose that an individual with income i cares about two


Suppose that an individual with income I cares about two goods, X and Y. The price of the two goods is Px and Py. The individual has the following utility function:

U(X,Y) = X(2+Y)

a) Find the Marshallian (uncompensated) demand for X and Y.

b) Find the Hicksian (compensated) demand for X and Y.

c) What is the minimum expenditure necessary to achieve a utility level of U = 100 with Px = 5 and Py = 20 ?

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Econometrics: Suppose that an individual with income i cares about two
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