Question: Question 1 (15 marks) Consider a consumer with quasi-linear utility function: 1 2 ml/ +272 Assume that 192 = 1 and p1 > 0. Qla.

Question 1 (15 marks) Consider a consumer with quasi-linear utility function:

Question 1 (15 marks) Consider a consumer with quasi-linear utility function: 1 2 ml/ +272 Assume that 192 = 1 and p1 > 0. Qla. (3 marks) Sketch the indifference curves (ICs) of this utility function, noting that the MRS of this utility function is: 1 _ '54\"1 1/2 2 Indicate the special properties of the ICs, if any. le. (3 marks) Derive the demand functions 2:1(p1, I ), $2 (p1, I) of this consumer. Qlc. (3 marks) Suppose that I increases by 1. Find the corresponding changes in the demand of two goods

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