Economics
posted by Bob .
If utility is U(x,y) = xy + y, what is the indirect utility function and expenditure function?

Economics 
economyst
The answer to this takes several steps (and beyond what I am willing to do here).
first, calculate MUx and MUy, noting that for maximization MUx/MUy = Px/Py
Second, solve for Px*X or Py*Y. Plug this into the budget constraint equation I=Px*X + Py*Y. Rearrange terms to get X (or Y) by itself. This will be X* or X when utility is maximized. Ditty for Y*. Plug this X* and Y* into your utility equation and you are done.
Repost, showing your work and I, or others will critique.
Respond to this Question
Similar Questions

Economics
Ive been stuck on this forever now if someone could please walk me through it i was appreciate it: 1: Suppose John had a utility function of U=X^2/3Y^1/3 . Derive Johns demand function from his utility function showing all the necessary … 
Micro econ
1: Suppose John had a utility function of U=X^2/3Y^1/3 . Derive Johns demand function from his utility function showing all the necessary steps. i know that the MUx=MUy and first i derive the equation to 2/3X^1/3 1/3Y^2/3 then im … 
economics
Suppose a person has a utility function U=YX. What is the minimum level of income required to get a utility of 20? 
microeconomics
Suppose a person has a utility function U=YX. What is the minimum level of income required to get a utility of 20? 
marketing
how are: goods services utility form utility place utility time utility possession utility information utility benifits and occupational area ralated to marketing the deffinition for it is: the prosses o developing, promotng, and distributing … 
Economics
If utility is U(x,y) = x^0.3 y^0.7 (i.e x* = 0.3I/Px and y* = 0.7I/Py). What is the indirect utility function and expenditure function? 
economics math
Consider a consumer who has an experienced utility function given by UEU(x,m)=2sqrtx+m. Let q denote the market price of good x, and assume that it remains fixed throughout the problem. The company selling the good x starts an advertisement … 
economics
Consider a consumer who has an experienced utility function given by . Let denote the market price of good , and assume that it remains fixed throughout the problem. The company selling the good starts an advertisement campagin that … 
economics
1.. Suppose that U(x; y) = min(x; y) with px = 1 and py = 1. Describe and illustrate the income and substitution effects of an increase in the price of good y. What does this imply about a tax imposed on good y.. 2.. Let U(x; y) = … 
Economics
Luisâ€™s utility function is u=x^.4y^.6 Suppose that Luis wants to get 60 utils, provide 4 bundles with which he can achieve that level of utility. Please explain