Question: A consumer has a utility function u(x1,xz)=x1+2(xz)2 a) Derive her ordinary demand functions. For this part, consider the possibility of a corner solution, for the

 A consumer has a utility function u(x1,xz)=x1+2(xz)\"2 a) Derive her ordinary

demand functions. For this part, consider the possibility of a corner solution,

A consumer has a utility function u(x1,xz)=x1+2(xz)\"2 a) Derive her ordinary demand functions. For this part, consider the possibility of a corner solution, for the rest of the questions assume an interior solution. b) Determine her indirect utility function. c) Determine her expenditure function. d) Determine her compensated demand functions. e) Verify the Slutsky equation. f) Say the individual has income of Y=$1000, and the prices of are p1=$20 and p2=$10. Say the price of good 1 falls to $15. What is the size of the income effect (measured in terms of good 1)? g) Say income and prices are as above. Now the individual is offered a membership in a club whose members can buy good 2 at a price of $5 (this is the only benet om joining the club). What is the maximum amount of money the individual would pay to join the club? h) If the membership dues for joining the club are $30 would she join? What is her marginal utility of income

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