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  3. 3 consider the following utility function u 1 2 min...

Question: 3 consider the following utility function u 1 2 min...

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3. Consider the following utility function, u (1, 2) min br 0<a1 and b>0 (a) [15 points] Derive the Marshallian demand functions. (Explain your derivation in details.) Does the Marshallian demand increase with price? consumption goods normal goods? (b) [ 15 points Derive the Hicksian demand functions. Does the icksian demand increase with price?

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