Question: Max has the utility function U (x1, x2) = 21 (32 + 1). 1. Suppose that the price of commodity one is P, the price

Max has the utility function U (x1, x2) = 21 (32 + 1). 1. Suppose that the price of commodity one is P, the price of commodity two is p. and Max has an income of y. Find the Marshallian demand functions (or correspondences) for each commodity for Max

2. Suppose that the price of commodity one is $2, the price of commodity two is $1, and Max has an income of $10. How much of commodity one does Max demand? How much of commodity two? If his income dou- bles and prices stay unchanged, will his demand for both commodities double?

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