Question: Consider a person whose preferences can be represented by the utility function U= ln(q1-u1)+(1- )ln(q2-u2)where the parameter parameter lies strictly between zero and one, andu1

Consider a person whose preferences can be represented by the utility function

U= ln(q1-u1)+(1- )ln(q2-u2)where the parameter parameter lies strictly between zero and one, andu1

Given this information:

  1. By solving the first order conditions, derive the Marshallian demand functions for good 1 and good 2.

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