# Marshallian demand functions

Consider an individual with the following constant elasticity of substitution utility function:

U=[(x1^ρ)+(x2^ρ)]^(1/ρ)

Who faces the following budget constraint:

p1x1 + p2x2 = I

Find his Marshallian demand functions. You may assume that nonnegativity constraints on x1 and x2 are not binding.

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Question

Consider an individual with the following constant elasticity of substitution utility function:

Who faces the following budget constraint:

p1x1 + p2x2 = I ...

#### Solution Summary

Marshallian demand functions are emphasized.

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