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Andrea maximizes the following utility function: 2 E u(x1,xg) = 2215323 subject to the budget constraint 101371 + 102332 = I where p1,p2,m1,m2,I > 0

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Andrea maximizes the following utility function: 2 E u(x1,xg) = 2215323 subject to the budget constraint 101371 + 102332 = I where p1,p2,m1,m2,I > 0 (a) Find the (x1, :62) that maximizes 1.5051, 322). (b) Show that the maximizer 1:; (p1, p2, I) is decreasing in p2 and increasing in I (Hint: Use the partial derivatives). (c) Does 3:;(p1,p2,1) change if p1 changes? (Hint: partial derivatives)

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