Question: Solve the utility maximisation problem and find the Walrasian demand constant elasticity of substitution utlility function: u(x1,x2)=[x1^()+x2^()]^(1/)given prices of the consumption goods p1 and p2

  1. Solve the utility maximisation problem and find the Walrasian demand constant elasticity of substitution utlility function:

    u(x1,x2)=[x1^()+x2^()]^(1/)given prices of the consumption goods p1 and p2 as well as consumer income I.

  2. Find the consumer price index (price of aggregate consumption) when consumer utility function is:

    U(x1,x2) = x1^()x2^(1-)

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