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(4) Recall from Problem Set 3, #4 that Charlotte has preferences consistent with the function (1, 2 ) = 1 + 2, which implies her

(4) Recall from Problem Set 3, #4 that Charlotte has preferences consistent with the function (1, 2 ) = 1 + 2, which implies her demand function for good 1 is 1 = 2 2 41 2 and her demand function for good 2 is 2 = 2 2 41 . (Assume that Charlotte's income is sufficient for her to consume positive quantities of both goods.)

(a) Is Charlotte's demand for good 1 more elastic with respect to changes in 1 or 2?

(b) If 1 = 1, 2 = 10, and = 50, Is Charlotte's demand for good 2 more elastic with respect to changes in 1 or 2?

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