Find the demand functions for the individuals below, the budget constraint is pxx+pyy=m
23
Bill:U(x ,x )=x y 12
2/5 3/5 Buster: U(x, y)=x y
23 Ben: U(x, y) = (x+1) (y+2)
Barbara: U(x ,x ) =3x +2y 12
Beth: U(x, y)=min{x , y}
Bill:
"m=12"
"MU_x=\\frac { \\delta U}{ \\delta x}=2xy^3"
"MU_y=\\frac { \\delta U}{ \\delta y}=3x^2y^2"
"\\frac {MU_x}{p_x}=\\frac {MU_y}{p_y}"
"xp_x=\\frac {2}{3}yp_y"
"xp_x+yp_y=12"
"yp_y=9.2"
"xp_x=4.8"
Buster:
"m=23"
"MU_x=\\frac { \\delta U}{ \\delta x}= (\\frac {x}{y})^{\\frac {2}{5}}"
"MU_y=\\frac { \\delta U}{ \\delta y}=(\\frac {y}{x})^{\\frac {3}{5}}"
"\\frac {MU_x}{p_x}=\\frac {MU_y}{p_y}"
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