2. Let pi and p2 be the price levels of Goods 1 and 2 while u is the utility level. Suppose that the Hicksian cost function is given by: log[C(p, u)]=u p. p + log (pp.), where ai, A2, B1 and B2 are the parameters. a) What are the parametric restrictions of the following cost functions in order to make sure that they are linear homogeneous in pi and p2? (6 points) b) Derive the indirect utility and Marshallian demand functions. (8 points) c) Show that the cost function may not be increasing in pi and p2. (6 points) 2. Let pi and p2 be the price levels of Goods 1 and 2 while u is the utility level. Suppose that the Hicksian cost function is given by: log[C(p, u)]=u p. p + log (pp.), where ai, A2, B1 and B2 are the parameters. a) What are the parametric restrictions of the following cost functions in order to make sure that they are linear homogeneous in pi and p2? (6 points) b) Derive the indirect utility and Marshallian demand functions. (8 points) c) Show that the cost function may not be increasing in pi and p2. (6 points)