Find the formula of income-consumption curve

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Reference no: EM131169460

Chloe consumes chicken wing (x) and beer (y). Let Px+Py=M be Chloe’s budget constraint and her utility function is U(x, y)=5xy.

a. Find the formula of income-consumption curve

b. Find the demand functions of chicken wing

c. Draw Chloe’s Engel curve for chicken wing from question (c) above

d. What are the price elasticities of demand for chicken wing? What are the income elasticities of demand for beer?

Reference no: EM131169460

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