Given: U(x1, x2) = x1x2+x1

a)

Calculate the Marshallian demand for x1 and x2

b)

Graph the demand for x1 when p2= 20 and I = 100.

For Marshallian Demand I got:

x1 = (I-P2)/3P1 and x2=((2I - 2P2)/3P2) -1

is this correct? I did the Lagrangian. How would I calculate demand for x1 if I don't know the price of x1?

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Jean KeelingLv2

6 Jul 2018

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