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.5 .5, 2 Suppose you have the CES utility function Max. U(x, y) = (x¨° + y³)². The price of good x is $10 and the price
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- 5 5 2 Suppose You Have The Ces Utility Function Max U X Y X Y The Price Of Good X Is 10 And The Price 1 (103.76 KiB) Viewed 12 times
.5 .5, 2 Suppose you have the CES utility function Max. U(x, y) = (x¨° + y³)². The price of good x is $10 and the price of good y is $1. The consumer has an income of $110. Solve for whether there is diminishing marginal utility with respect to each of the goods, whether the preferences that are represented by the utility function are strictly convex, and also solve for the demand functions for x and y.