a. First formulate the Lagrangian using the utility function and budget constraint (denote the Lagrange multiplier by )). Then find the first- order conditions for ci and c2. You now have two expressions that you can combine to eliminate 1. Show that pic1=p2c2 holds. b. Substitute this in into Frank's budget constraint, and solve for c1. We now have the demand for c1 as a function of prices and endowments. Also find the demand function for c2. c. What is the effect of increasing the endowment of good 1 on the demand for good 2? Explain your finding