1. (CES Preferences) Suppose there are only two goods 3:1, :32 and prices are strictly positive p >> 0. A consumer with I > 0 has preferences represented by a(3:l,:z:2) = as? + :83 where 0 0, set up the expenditure minimization problem. Indicate the objective function, constraint: and choice variable. Find compensated demands and the expenditure function. (e) (f) Suppose that p1 increases. In two separate graphs, illustrate how this price in crease changes the solution the utility maximization and expenditure minimiza tion problems