2. Consider the following cost function c(p, uº) Pi = (²:)" (P.) uº + Pill+ Pin. 1-a (a) Find the compensated (Hicksian) demands for x, and xj. (b) Find the Marshallian

demands. (c) Show that the Engel Curves defined as Engel(y) = x(P, y) for k = {i, j} (rather than as Engel(y) = w (p, y) for k = {i, j} as in lecture) are linear (d) Show that the true cost of living index associated with these preferences depends on the level of utility.