1. Let the consumption set be (,)Rn1,and suppose that preferences are strictly

convex and quasi-linear in the first good (you may assume the result in MWG page 50: quasi-linear preferences can be represented by a utility function of the formu(x1, x2) =x1+f(x2)). Normalizep1= 1.

1. (a) Show that the Marshallian demand functions for goods 2, , ..., nare independent of wealth.
2. (b) Show that the Hicksian demand functions for goods 2,...,nare independent of utility.
3. (c) Argue that the indirect utility function can be written in the formv(p,w) =w+(p) for some function.What is the form of the expenditure function?