Question: The consumer has the endowment e 1 = 0 , e 2 = 1 and the utility function The price of good 2 is 1

The consumer has the endowment e1 = 0 , e2 = 1 and the utility function

The consumer has the endowment e1 = 0 , e2 = 1

The price of good 2 is 1 and the price of good 1 is p.

a) Find the consumer's demand for good 1 as a function of p.

b) Find the inverse demand function for good 1.

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