# Utility Assignment | Homework For You

1. Suppose Melissa’s utility over X and Y can be represented by U(X,Y)-Y. Melissa maximizes her utility subject to a budget constraint. What are her uncompensated demand functions, X*(pX, pY, I) and Y*(pX, pY, I)?

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X*(pX, pY, I) and Y*(pX, pY, I)/Py

X*(pX, pY, I)/pX and Y*(pX, pY, I)

X*(pX, pY, I) and Y*(pX, pY, I)/(Py)

X*(pX, pY, I)/pX and Y*(pX, pY, I)

X*(pX, pY, I) and Y*(pX, pY, I)/(2Py)

X*(pX, pY, I)/(2pX) and Y*(pX, pY, I)

2. My utility function U(x,y) only depends on two commodities x and y. When and , my demand functions are such that I spend all of my income on y and never buy any of x, no matter how large or small my income may be. On the basis of this information, my friends have concluded that x is necessarily an economic bad for me. Are they correct? Get Economics homework help today

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