Question 3. The Utility function is given by: U(x1;x2)=Min(x1;x2). Income is equal I and prices are pl and p2. a) (10 points) What is income elasticity of x1? Hint: first find the function describing the demand for x1 and then take the derivative of it. b) (5 points) Is x1 normal or inferior good? c) (10 points) What is a cross price elasticity between x1 and p2? d) (5 points) Are x1 and x2 complements or substitutes or neither