Question: I. Assume the utility function is u(x1, x2) = 0.2 ln(x1) + 0.8 ln(x2) and the marshallian demand functions are x1(I, p1, p2) = 0.2(I/p1)

I. Assume the utility function is u(x1, x2) = 0.2 ln(x1) + 0.8 ln(x2) and the marshallian demand functions are x1(I, p1, p2) = 0.2(I/p1) ; x2(I, p1, p2) = 0.8(I/p2) Do the following: 1. Determine the indirect utility function. 2. Determine the minimum expenditure function.1 3. What are the hicksian demand function of this consumer. 4. Assume income is originally I = 100 and prices p1 = 1 and p2 = 1, due to an upcoming storm prices are believed to change to p1 = 1 and p2 = 2. How much the consumer is willing to pay such that the storm doesn't happen?

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