An agent consumes quantity {121,32} of goods 1 and 2. She has utility u[;r1,3:2} = m'f'm. The prices of the goods are 101 and 102. The consumer has income m. 1. Derive the agent is demand functions as a function of income, M, and prices p1 and p2 using the MRS and the budget line. 2. Suppose a = 41, M' = 100, p1 = 2, p2 = 1 but then p1 falls to 1. For good 1 compute the substitution and income effects of this price change, and show ths effects on a clear complete graph. 3. Determine whether 1:1 is normal, inferior, ordinary or Giffen. Explain