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Consider a consumer who consumes two goods and has utility function: u(x 1 ,x 2 )= x 2 + sqrt(x 1 ). The price of

Consider a consumer who consumes two goods and has utility function: u(x1,x2)= x2 + sqrt(x1).

The price of good 2 is $1, the price of good 1 is p, and income is m. Derive the ordinary demand functions of good 1 and good 2. For what values of p and m is:

a. good 1 normal?

b. good 2 normal?

c. good 1 an ordinary good?

d. good 2 a gross substitute for good 1?

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