Answer to Question #189063 in Microeconomics for Shayla

Question

find the Marshallian demand funtions for commodity x and y

Answer 1

It deals with utility approach in which consumer maximizes his utility subject to budget constraint. For this case, there is two goods x and y.

If the utility function U(x,y)=xy

Budget constraint

$P_x \times X+P_y\times y =m$

The graph for the Marshallian demand functions is given below -