Derive the optimal demand Marshallian demand function for X and for Y.

timer Asked: Mar 21st, 2014

Question description

Given the following monotonically transformed utility function faced by the consumer

lnU(X, Y) = 0.5lnX+0.5 lnY

The price of good X is Px and the price of good Yis Py. Derive the optimal demand (Marshallian demand) function for X and for Y.

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