1. Max from Tutorial 2 Question 2 b): Suppose Max's preferences for gin (g) and tonic (t) can be represented by the utility function ????(????, ????) = ????????????(2????, ????).
2. Use Max's consumer choice problem to derive Max's demand function for gin as a function of the prices and income pg, pt and M: ???? = ????(???????? , ???????? , ????). (10)
3. The utility function is not a differentiable function so you can't use calculus and the standard method to solve Max's consumer's choice problem. Hint: Look at Max's indifference curves in tutorial 2 question 2 b) to see which bundles he might choose at different relative prices.
4. Draw Max's demand curve for gin g when he has income 12 and the price of tonicpt is2:????=????(????????|???????? =2,????=12). (4)