Question: Practice Midterm I am trying to study for! The oicture cuts off at f) , but there are more. Please continue after f) to the

Practice Midterm I am trying to study for! The oicture cuts off at f) , but there are more. Please continue after f) to the following: g) Calculate the ordinary demand function of optimal x1* (P1, P2, I) and optimal x2* (P1, P2, I).h) Calculate the indirect utility function, V(P1, P2, I).i) If we multiply P1, P2, and I by a > o, how does the bundle OPTIMAL (x1*, x2*)beimpacted?

Part II: Analysis Question 4 (30 points} Consider the following utility preference. U(x1,x2) 23x1 + x2 Let income be I = $20, the price of xi be p1 = $1 ,and the price of x2 be p2 = $2 . a) What is the objective function in the utility maximization problem? (2 points) b) What are the choice variables in the utility maximization problem? (1 point) c) What are the parameters in the utility maximization problem? (1 point) d) What is the constraint in the utility maximization problem? (2 points) e) What is the marginal utility of xi? (3 points) f) What is the marginal utility of 3:2? (3 points)

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