Question: Consider the utility function u(x 1 , x 2 ) = lnx 1 + lnx 2 . Let m denote the consumer's income and let

Consider the utility function u(x1 , x2 ) = lnx1 + lnx2 .

Let m denote the consumer's income and let p i be the price of item i = 1, 2.

Show that the demand function for item 1 is x1 (p1 , p2 , m)=2p1m

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