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1. (34 points) This question will let you examine /explore a more interesting utility func- tion than the simple example discussed in class as there
1. (34 points) This question will let you examine /explore a more interesting utility func- tion than the simple example discussed in class as there will be both cross-price elas- ticity and an inferior good. Suppose vou are told a consumer has the following utility function: Erl:'f::rqz:] =gy + vz + q: You should assume income is Y, the price of good r is P;. and the price of good = is F.. This question will ask about several concepts discussed in lecture. (a) (8 point) What is the Marshallian demand for goods r and 2?7 lLe. find (g%, q?) for both interior solutions and corner solutions. Note: the outcome is \"ugly\" for the interior section and both corner should include constraints, i.e. limits using Y relative to f(P,, P,). Hint: if solving using M RS = MRT, can use this information again in part (d)
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