2. Suppose Marshalls utility for good 1 (1) and good 2 (2) is u(q1, q2) = (112 + 212)2.The price of good 1 is p1 the price of good 2 is p2, and Marshalls income is .

a. (10 points) Find Marshalls demand function for good 1; find Marshalls demand function for good 2. You must use the LaGrangian method and clearly write out the four steps described in class. You will be graded on both your final answer and how well youve implemented the method. Note that the utility function is not Cobb-Douglas.

b. (2 points) Looking at the demand function for good 1, would you conclude that goods 1and 2 are complements, substitutes, or neither? Explain.

c. (3 points) Is good 1 a normal good, inferior good, or neither? What about good 2? Explain