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Suppose that a consumer has utility function U(x1,:c2) = min{a:1 + 10, 2:51 + 2552} over X = Ki. 1. 2. Plot the set of
Suppose that a consumer has utility function U(x1,:c2) = min{a:1 + 10, 2:51 + 2552} over X = Ki. 1. 2. Plot the set of all kinks of the consumer's indifference curves. On the same graph, plot the indifference curves through the bundles (1, 1), (4, 4), and (12, 12). Suppose w = 60 and p1 = 12. Calculate the consumer's Marshallian demand for each good when p2 = 4 and p2 = 9. . For the same price change, calculate how much the consumer's Hicksian demand for each good changes. How much additional wealth does the consumer need to afford the Hicksian demand at the new prices? Suppose that prices are (101,102) = (12, 4) and wealth is initially to = 60. When wealth rises by the amount you calculated in the previous part, how much does the consumer's Marshallian demand for each good change
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