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1 . Your research demonstrates that Strams (S) (smarts) can be improved through the proper combination of ria, which we'll call x1 and skoob, which
1 . Your research demonstrates that Strams (S) ("smarts") can be improved through the proper combination of ria, which we'll call x1 and skoob, which we'll call x2. Unfortunately, ria and skoob are not free (ria must be cleaned and refined before use and skoob can be purchased at the mall). Strams can be produced using input combinations described by the following production function: 0.6 0.2 S =X X2 Where: S = Strams, x1=ria, and x2=skoob a. Derive the demand function (an equation, not a number) for ria (x1)? b. Based on this equation, describe what happens if the output price increases. c. Based on this equation, describe what happens if input price increases
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