(d) Find the Hicksian Demand for the interior solutions as a function of Pr, P₂, and Ū, i.e. find (q). What is the Expenditure function E(P₂, P.,Ū)? Hint: you can use MRS = MRT you found in part (a) and solve for q₂ = f(x, Pr, P₂) as this will make finding a solution much easier.
(d) Find the Hicksian Demand for the interior solutions as a function of Pr, P₂, and Ū, i.e. find (q). What is the Expenditure function E(P₂, P.,Ū)? Hint: you can use MRS = MRT you found in part (a) and solve for q₂ = f(x, Pr, P₂) as this will make finding a solution much easier.
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.7P
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can you please explain question d for me and solve it
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