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10. (10 points) When u(x1, x2) = min {%, 722}, at prices and income P1, P2, and I , demand for good 1 a! aP1+bP2

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10. (10 points) When u(x1, x2) = min {%, 722}, at prices and income P1, P2, and I , demand for good 1 a! aP1+bP2 is given by x'f (P1, P2, I) = . Given this information, which of the following statements is true? Goods 1 and 2 must both be normal goods and Good 2 is a complement for Good 1. Good 1 is nonnal, but good 2 may be normal or inferior. Goods 1 and 2 must both be normal goods and Good 2 is a substitute for Good 1. None of the above statements are true. P-PP'E\

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