Question: The utility function is de ned by u(x1 x2) = 5minx1 x2 + 2x2. Suppose that the constraints are as follows: I p1x1 + p2x2

The utility function is de ned by u(x1 x2) = 5minx1 x2 + 2x2. Suppose that the constraints are as follows: I p1x1 + p2x2 x1 0x2 0 where I is income, p1 is the price of good 1 and p2 is the price of good 2. (a) Find the demand functions for good 1 and good 2. (b) Sketch the demand functions for good 1 and good 2

2. The utility function is defined by u (x1, 12) = 5min(x1, x2} + 212. Suppose that the constraints are as follows: I pic, + por2, $1 2 0,12 2 0 where / is income, p is the price of good 1 and pa is the price of good 2. (a) Find the demand functions for good 1 and good 2. (b) Sketch the demand functions for good 1 and good 2

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