Answer to Question #135030 in Microeconomics for Nigel Ntembelwa

Question

Chileshe likes pork ribs (R) and chicken (c). Her utility function is (R,C) = 10R²C. Her weekly income is k90 which she spends exclusively on R and C. The price for a slab of ribs is k10 and that for a piece of chicken wing is k15
(a) derive the Marshall I an and hicksian demand functions for pork ribs and chicken wings.

(b) If the price of ribs falls to k5, algebraically and graphically show the income and substitution effects of this price change (Ribs are on the horizontal axis). Ensure to put the values on the graph showing both substitution and income effect

Answer 1

Dear Nigel Ntembelwa, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order