2. A consumer has utility u(x1,...,xn) = r₁₁...r, where ẞ₁,..., ẞn> 0 and ẞ1 + + ẞn 1, and their income is m>0. The price vector is Pn) > 0, where 0 Є R" is the null vector. p = (P1, = (a) Determine the Marshallian demand x;(p; m) for good i. (b) Determine the indirect utility V (p, m). (c) If prices change from p0 = (P1,0,..., Pn,0) to pº = (P1,1, Pn.1) and == k; is the proportion of income spent on good i, prove that the compensating variation is: ki n Pi,1 CV = II m

Fig: 1