Each week an individual with income m consumes quantities x and y of two goods whose prices are p and q. Her utility function is U(x, y)= a ln x + ß In y (a,ß>0) which is defined for x, y >0. Find the demand functions. Now suppose the individual works for 1 hours per week out of an available L hours so that she has (L-1) hours of free time and suppose her utility function is now V(x, y,1)= a ln x + Bln y + y ln(L-1) (a,b,y > 0) which is defined for x,y > 0 and 0 SI(a+BwLly?

Q&A Education