The following demand functions, determine whether
Question # 00610141
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Updated on: 10/31/2017 05:38 AM Due on: 10/31/2017

Based on the following demand functions, determine whether good 1 is a normal good or inferior good, whether it is an ordinary good or Giffen good, and whether good 2 is a substitute or complement for good 1
(a) x(p1,p2,m) = m / 3p1+p2
(b) x(p1,p2,m) = (m1/4 )(p11/4) / (p23/4)
(hint: consider only the combinations of prices and incomes such that x1(p1,p2,m) ? m/p1, i.e., the analysis ignoring the possibility that x1(p1,p2,m) > m/p1).

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Solution: The following demand functions, determine whether