2 Substitutes and complements Consider the quasilinear utility function U (:c) = 431/450?' + 933 over X = R1. Suppose the agent's promised utility is
2 Substitutes and complements Consider the quasilinear utility function U (:c) = 431/450?' + 933 over X = R1. Suppose the agent's promised utility is large enough that the agent's Hicksian demand for good 3 is nonzero. Do not make good 3 a numeraire for this problem. 1. Find the agent's Hicksian demand for each good. 2. Which goods are complements? Which are substitutes
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