Rui's utility function is U=X+4XZ+Z. Let the price of good X be px, the price of good Z be normalized to $1.00, and U be her level of well-being. What is her expenditure function? Rui's expenditure function (E) is E = 2. √PX(U+0.25) 2 -0.25 (Px +1). (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can be created with the char Derive her uncompensated demand curve for X. Let Y be her income. compensated demand curve for good X is

For the utility function U = (Qx0.5+Qy0.5)² and the budget 122 = 8Qx + 8Qy find the CHANGE in optimal consumption of X if the price of X increases by a factor of 1.7. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).

Question 4 Naomi's expenditure function defined for a month for two commodities, Cassava (Q₁) and Banana (Q₂) is given by: 1. 11. Where P₁ is the price of Cassava (P₁>0), P2 is the price of banana (P₂ >0) and U is the fixed utility. The income of Naomi is m, where m > 0. Derive the indirect utility function for Naomi (Hint: Use the duality conditions) Using the Shephard's Lemma condition, derive Naomi's Hicksian demand function for Cassava (Q₁). iii. H IV. [125P,PU3 8 Using the Roy's identity, derive Naomi's Marshallian demand function for Banana (Q₂). Using the answer in (i), evaluate Naomi's maximum utility level when the price per tuber of Cassava is 5 cedis, the price per finger of banana is 10 cedis and her income is 250 cedis.