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Consider the utility function u(x 1 , x 2 ) = lnx 1 + lnx 2 . Let m denote the consumer's income and let

Consider the utility function u(x₁ , x₂ ) = lnx₁ + lnx₂ .

Let m denote the consumer's income and let p i be the price of item i = 1, 2.

Show that the demand function for item 1 is x₁ (p₁ , p₂ , m)=2p1m

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