Question: 2. Consider the following indirect utility function Km o(p, m) = PIP2 where K = a(1 -a)1-*, with 0 2. Consider the following indirect utility

2. Consider the following indirect utility function Km o(p, m) = PIP2 where K = a"(1 -a)1-*, with 0

2. Consider the following indirect utility function pfP2 Where K aa(l with O < < l. Use Roy's identity to find the demand functions. Let m 1. Derive the direct utility function u(p). Plug in the de- mand functions from Roy's identity to verify that u(p) is indeed the direct utility function corresponding to the indirect utility function v(p).

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