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How do you find the demand of goods x1 and x2 by giving utility function? Consider the following function: f(x1, X2) = Ax15 +x2 where

How do you find the demand of goods x1 and x2 by giving utility function?

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Consider the following function: f(x1, X2) = Ax15 +x2 where x1 2 0, X2 2 0, A 2 0, 0 0 and faces prices p, and p2 respectively for goods x1 and x2. i) Derive and describe the demand of the consumer for goods x, and x2. [20 marks] ii) Are demand functions affected if parameter A increases? Explain your answer using economic intuition. [10 marks]

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