Question: Problem 2 [20 points]. John and Jane consume nonnegative quantities of two goods. 1 and 2. Each has wealth w > 0 (they can have

 Problem 2 [20 points]. John and Jane consume nonnegative quantities of
two goods. 1 and 2. Each has wealth w > 0 (they

Problem 2 [20 points]. John and Jane consume nonnegative quantities of two goods. 1 and 2. Each has wealth w > 0 (they can have different wealth levels) and faces the same prices p1 = 1 and p2 = p > 0. John's preferences are described by the following utility function: 1110\"" (x1,x2) = x1 + 1n x2. while Jane has utility function 111\"\" (x1, x2) = x1 + Alysia2. 1) [7 points] Set up and carefully solve John's utility maximization problem to find his Marshallian demand for both goods. Do the same for Jane. 1

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