Question: Need your help with this problem. thank you 5. Hillary's preferences are represented by the utility function u(x 1 , x 2 ) = x

Need your help with this problem. thank you

5. Hillary's preferences are represented by the utility function u(x₁, x₂) = x₁ x₂ . Suppose p₂= 1 throughout. Let her original optimal choice be the bundle (x₁, x₂) = (1, 1).

(a) Can you write the equation for her standard demand curve for good 1 (implied by the income she has in that original choice)?

(b) Can you write the equation for her compensated demand curve for good 1 (fixing the utility level she obtained at that original optimal choice)?

(d) Can you confirm this using the Slutsky equation, evaluated at that point?

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