Question: 3 consider the following utility function ux1x2minxa1 bxa2 00 a...
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![3. Consider the following utility function, (a) [15 points] Derive the Marshallian demand functions. (Explain your derivation in details.) Does the Marshallian demand increase with price? Are the two consumption goods normal goods? (b) [15 points] Derive the Hicksian demand functions. Does the Hicksian demand increase with price?](https://homework-api-assets-production.s3.ap-southeast-2.amazonaws.com/uploads/store/367404994/16030218939c0423e53f7bded5504aa10b0a4b1a04.png)
3. Consider the following
utility function, u(x1;x2)=min[xa1; bxa2]; 00 (a) [15 points]
Derive the Marshallian demand functions. (Explain your derivation
in details.) Does the Marshallian demand increase with price? Are
the two consumption goods normal goods? (b) [15 points] Derive the
Hicksian demand functions. Does the Hicksian demand increase with
price?
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