Question: 3. (23 points) A consumer consumes two goods: 1 and 2. His utility function is U(mi,32) = wai) + , where o(r ) is a

3. (23 points) A consumer consumes two goods: 1 and 2.

3. (23 points) A consumer consumes two goods: 1 and 2. His utility function is U(mi,32) = wai) + , where o(r ) is a positively sloped function and $1, r, 2 0. As- sume v'(r ) > 0 and v"(2)

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