Horace has the following utility function over two goods, x and y U(x, y)xy Let Y denote Horace's total income and P. and P, denote the prices of x and y, respectively

a. Derive the Horace's Marshallian (ordinary) demand functions for x and y. Do these demand functions satisfy the law of demand? Why or why not? b. Solve for the Horace's Hicksian demand functions for x and y.
b. Compute the substitution effect associated with an increase in the price of the x (ie. take the partial derivative of the Hicksian demand function for x with respect to the price of x). Is it positive or negative?
c. Write down the Horace's expenditure function E(P, P, U). Use Shephard's Lemma

Peppy roaney believes that pizza is a much more versatile dish than most people realize. as the national marketing manager for pizza guys, he observed how consumers were delighted with barbecue pizza, hawaiian pizza, mexican pizza and other unique combinations. his suggestions for other unusual pizzas, however, were met with a negative response by his superiors. even some of his colleagues laughed at his ideas. peppy's confidence in his ability to understand the market has led him to focus on planning a business of his own. peppy realizes that he will take a risk when he leaves his job with pizza guys and embarks upon a new venture: peppy's pizzazzeria. peppy is excited about the potential of profitably catering to the unmet desires of pizza consumers. peppy is confident that peppy's pizzazzeria will be a success, but only if he has enough money to do things right. since peppy has very little personal wealth, he knows he must obtain financial assistance. in order to prepare for meetings with bankers and p

As a project manager for a large construction company, shaun decided to make the performance appraisal process as painless as possible for his crew. he spent a considerable amount of time creating performance standards he felt were reasonable, and after six months' time, he scheduled individual appointments with each worker to discuss strengths and weaknesses and areas that needed improvement according to the standards he privately set. some employees were sent to vestibule training, and one even got a promotion with additional compensation. what did he fail to do correctly

When the two countries did not specialize, the total production of jeans was 23 million pairs per month, and the total production of corn was 68 million bushels per month. because of specialization, the total production of jeans has increased by million pairs per month, and the total production of corn has increased by million bushels per month. because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade?