SHOW YOUR WORK in detailes

QUESTION B1 (5 marks total) Let R1 be the commodity space of a consumer and 11(1) 2 331 + 332 denote the utility function of the consumer. Assume p1 = 1,392 = 2 and w = 20 before a change in price in commodity 1. After the price change, the price of commodity 1 is pi = 4, and all other values remain the same. Let u be the utility of the consumer from her optimal consumption bundle before the price change, and u' be the utility of the consumer from her optimal consumption bundle after the price change. (a) (2.5 marks) Derive the amount of additional money the consumer would need to reach her initial utility (21.) after the change in price of commodity 1. Show your work. (b) (2.5 marks) Derive the amount of money the consumer would need to pay to reach her utility (11') before the change in price of commodity 1. Show your work