Question: Let there be two goods with quantities = (1, 2 ) + 2 1 0, 2 0. Let prices = (1, 2 ) ++ 2

Let there be two goods with quantities = (1, 2 ) + 2 1 0, 2 0. Let prices = (1, 2 ) ++ 2 1 > 0, 2 > 0. Let the consumer's preferences be represented by the CES utility function (1, 2 ) = (1 + 2 ) 1 where < 1, 0. Note: parameter in the utility function is the Greek letter rho not the price vector p. Derive the expenditure function (1, 2,).

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