Cobb-Douglas urility function. A consumer has the utility fun... | Filo

In Example 4.1, we looked at the Cobb-Douglas utility function U(x,y) = x^a * y^(1-a), where 0 <= a <= 1. This problem illustrates a few more attributes of that function.a. Calculate the indirect utility function for this Cobb-Douglas case.b. Calculate the expenditure function for this case.c. Show explicitly how the compensation required to offset the effect of an increase in the price of x is related to the size of the exponent a.