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This question deals with the theory of the consumer. (1) Consider a consumer who consumes only two goods, good 1 and good 2 with corresponding
This question deals with the theory of the consumer. (1) Consider a consumer who consumes only two goods, good 1 and good 2 with corresponding prices p1 and pg. Suppose that this consumer has an indirect utility function in . l P1+P2 () Does this indirect function satisfy the monotonicity properties that one would \"(19173322110 : expect of an indirect utility function? Give a justication for your answer, explaining how you know that the function has the property. ( 10 marks) Find the Marshallian and Hicksian demand functions for a consumer with the indirect utility function given in equation (1), carefully explaining how you do so and What results from the theory of the consumer you are using. (10 marks)
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