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1. An agent has a utility function over goods 1 and 2 of the form U = xc1 x d2 where c is your individual number and d is your minimum number. The agent's income is equal to your 2-digit number. The price of good 1 is your maximum number and the price of good 2 is your median number.
Derive the demand functions of agent for good 1 and good 2. Compute the quantities of good 1 and good 2 in the agent's optimum bundle.
Please give a detailed explanation for the answer for the following scenario: As the manager of a plant, you have seen production increase by 20% over the past year, but you have a
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