Question: Let the utility function b e given b y u ( x 1 , x 2 ) = x 1 2 + x 2 2

Let the utility function be given byu(x1,x2)=x12+x22 Let mbe the income of the consumer, p1 and p2 the prices of good 1 and good 2, respectively. (a) Write down the budget constraint and illustrate the set of feasible bundles using a figure.
(b)Suppose that m=24,p1=2 and p2=4. Find the optimal bundle for the consumer. In other words, find the combination ofx1 and x2that maximizes the consumers utility when the prices are p1=2 and p2=4, and her income ism=24.
(c) Determine the Marshallian demand function.
(d) Determine the expenditure function.

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