Question: Hello, I'm unsure of how to solve this problem. (Note: all information included in problem) 1.-There are two consumers, Alice and Bob. Alice's preferences may

Hello, I'm unsure of how to solve this problem. (Note: all information included in problem)

Hello, I'm unsure of how to solve this problem. (Note: all information

1.-There are two consumers, Alice and Bob. Alice's preferences may be represented by the utility function UA(x1,x2) = x1 -x2, and Bob's preferences may be represented by the utility function UB(x1,x2) = 20:1)? - x2. a) Obtain the optimal consumption of good x1 (demand functions) for Alice and Bob. b) Suppose the price of x2 is $10, Alice's income is $100, and Bob's income is $50. Obtain the aggregate demand (curve/function) for good x1, and graph it. c) If the price of good x1 is $5, what is the price elasticity of the aggregate (market) demand? What is the price elasticity of each of the individual demands

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