Question: U = U (X1, X2) = 2 x X1 x X2 + 4 x X2 Derive the Marshallian demand function for the two goods. Are

U = U (X1, X2) = 2 x X1 x X2 + 4 x X2

Derive the Marshallian demand function for the two goods.

Are they substitute or complements goods ?

P1, P2 , M = 5, 20, 2000

P1 , P2, M = 10, 10, 2000

Which price situation would make the consumer better off? What adjustment would have to made (+ or -) to the consumer's income to make him/her equally well off in both price situations?

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