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Utility Assignment | Homework for You

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November 30th, 2019

The Army pays soldiers a salary of $2000 per month. Suppose that all soldiers have the same utility function U=HY, where H is the quantity of housing services demanded per month (i.e., the number of square feet of space) and Y is a composite of all other goods.

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The price of housing is PH and the price of Y is PY. The Marshallian demand functions are H*=I/2PH and Y*=I/2PY. Soldiers have no income other than their Army salary.a)Find the indirect utility function and the expenditure function for the typical soldier. Get Economics homework help today

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