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Suppose Laura's utility function is ( , ) = 1/23/4. 1212 Write the demand function of good 1 (1) and good 2 (2) in terms
Suppose Laura's utility function is ( , ) = 1/23/4. 1212
Write the demand function of good 1 (1) and good 2 (2) in terms of income (m) and prices 1, 2. (10 points)
Check your answer! You know that a consumer spends all their available income. Check this by plugging your solutions from a in the budget constraint and showing (do the algebra) that it is equal to m. (2 points)
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