Based on the following demand functions

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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).

Reference no: EM131699384

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