Consider the consumer whose utility function is given by u(x,x) = In(x1)+x2. Derive the demand for X and x2 when the prices are p and p2, and the income of this consumer is I. Then, using the figure in the next page, draw how the consumption of x depend on income I, when P = P2 = 0.2 (Your answer should be consistent with Problem 6.) Also in the light of your solution, for what kind of goods consumers (we) are likely to have preference that is captured by quasi-linear utility functions? x(0.2,0.2,1) 10 9 8 7 6 5 4 en 2 1 0 0 1 2 3 5 6 7 8 9 10 Income I