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Suppose there are two price-taking consumers in a market. Consumer 1 has the expenditure function 3(1)], 132, U1 )2 U11! P1P2 Consumer 2 has the
Suppose there are two price-taking consumers in a market. Consumer 1 has the expenditure function 3(1)], 132, U1 )2 U11\"! P1P2 Consumer 2 has the utilityr function U2 (X1,Kz ) = 31(X1)3(Xs)a a. Derive the demand functions for each of the goods by each of the consumers. Denote the income of consumer I by 1111 and the income for consumer 2 by 1112 To. For what. values of the paramete egwi there exist a market demand function for each of the goods that is inde endent of the distribution of income
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