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Q1. My Demand functions for goods 1 also 2 are x1(p1, p2, I) also x2(p1, p2, I).If x1(2,5,90) = 20 x2(2,5,90) = 10 also x1(4,10,170) = 15 x2(4,10,170) = 11 can you say anything about Elucidate how I would rank the commodity bundles (20, 10) also (15, 11)?
Q2. Good 1 is a normal good; Good 2 is an inferior good. Using 3 budget lines also 2 indifference curves, illustrate the effect of a rise in p2 on the consumption of both x1 also x2. Label income also substitution effects for both goods
Q3. Illustrate what is the implication of product differentiation in defining market structure?
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