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Derive the Hicksian demand functions for goods 1 and 2 using Envelope Theorem. U ( x 1 , x 2 )
= min ( x 1 , x 2 ) U ( x 1 , x 2 ) = x 1 + x 2

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Derive the Hicksian demand functions for goods 1 and 2 using Envelope.pdf

  • 1. Derive the Hicksian demand functions for goods 1 and 2 using Envelope Theorem. U ( x 1 , x 2 ) = min ( x 1 , x 2 ) U ( x 1 , x 2 ) = x 1 + x 2