< Please help with questions D...Please help with questions DE & F.Thank you!3. Explain in what sense the expenditure minimization problem (the Hick-sian demand problem) is a "dual" representation of the consumer choice problemto the utility maximization problem (the Marshallian demand problem).(a) write now both problems for the case of utility function that representsstrictly convex preferences (for example, when u(21, 22) is strictly concave)(b) Define the value function in each problem, and interpret it (with words).(c) Then, using the value function definition in the two problems, show how:(i) a Hicksian demand can be computed as a Marshallian demand.(ii) a Marshallian demand can be computed as a Hicksian demand(d) Now, state the Slutsky relationship between the two demands (Hicksianand Marshallian).(e) In the Slutsky equation, using the mathematical formulation the incomeeffect vs the substitution effect, decompose the effects of an "own price change"for good 1 in a consumer choice problem with 2 goods.(f) Can you develop a notion of a income and substitution effect for good2 when the price of good 1 changes? If so, provide a detailed explanation. Ifnot, explain why you cannot identify with the income or substitution effect ofa "cross price" change.

The Slutsky relationship highlights that those processes are intertwined and can be analyzed on the…

Answered: Hicksian demand

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Economics

Hicksian demand

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.10P

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