Deriving Marshallian and Hicksian Demand Functions (Compensated and Uncompensated Demand)

Deriving Marshallian and Hicksian Demand (Compensated and Uncompensated Demand)

Consider the utility function U(x,y)=xy subject to an Income constraint; M=px+py

Find the Marshallian and Hicksian Demand Functions for good x and good y .

These two types of demand functions compliment each other. Hicksian Demand concerns minimising the costs associated with attaining a particular level of utility, Marshallian Demand concerns maximising utility for a given level of income.

Economics Playlist

Derivation of Marshallian Demand Functions from Utility Functions:    • Derivation of Marshallian Demand Func...  

Derivation of Marshallian Demand Functions from Utility Functions (II):    • Derivation of Marshallian Demand Func...  


Derivation of Hicksian Demand Functions from Utility Functions:
   • Derivation of Hicksian Demand Functio...  

Deriving Marshallian and Hicksian Demand Functions (compensated and uncompensated demand):
   • Deriving Marshallian and Hicksian Dem...  

Derivation of a Generalised (n-good) Marshallian Demand Function from Utility Function.
   • Derivation of a Generalised (n-good) ...  

Deriving Hicksian (compensated) Demand Using the Slutsky Equation:
   • Deriving Hicksian (compensated) Deman...  

Deriving Marshallian Demand From a Stone-Geary Utility Function:
   • Deriving Marshallian Demand from Ston...  

I hope it helps :)