An agent consumes quantity (1, 2) of goods 1 and 2. She has utility u(1, 2) = xix. The prices of the goods are p and p2. The consumer has income m. 1. Derive the agent's demand functions as a function of income, M, and prices p and p2 using the MRS and the budget line. = 2. Suppose a = 4, M 100, P1 = 2, P2 1 but then pi falls to 1. For good 1 compute the substitution and income effects of this price change, and show the effects on a clear complete graph. 3. Determine whether is normal, inferior, ordinary or Giffen. Explain.