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{"ops":[{"insert":"The utility function of a household is given by U^0 = A^0.4B^0.7 . Suppose the prices of \ncommodities A and B are denoted as pa and Pb respectively. \na. Derive the relevant household Hickson's demand functions given that household income is denoted as Y. \nb. Would you say that the two commodities A and B are substitutes? Why? \nc. Derive the equation of income consumption curve. \nd. Derive the marginal rate of commodity substitution.\n"}]}
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