Question: Question is attached as an image. 1. Suppose that a consumer's utility function is given by u(x1, 12) = 21 + In(x2 + 1). Let

Question is attached as an image.

Question is attached as an image. 1. Suppose that a consumer's utility

1. Suppose that a consumer's utility function is given by u(x1, 12) = 21 + In(x2 + 1). Let p = (p1, p2) >>0 denote the price vector and I > 0 the wealth level. Set up the Kuhn-Tucker condition for the UMP. Derive the solution (1, 17) for the UMP, assuming that the Arrow-Enthoven sufficiency theorem holds

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