1.  

Jill consumes only three goods, whose quantities are represented by X1, X2 and X3. Her utility function is U (X1, X2, X3) = X1a X2b X3c (1) Derive, from first principles, her demand functions for all three commodities. (ii) Suppose a=5, b=3, and c-2. What quantities of the three commodities will she consume if P1 = $10, P2 = $2 and P3 = $4 and her income is $100?