Question 1.
Suppose that the consumer’s preferences can be represented by the CES utility function:
u(x1, x2 ) = （x1^ρ + x2^ρ )^1/ρ                   where 0 ≠ ρ < 1.


a) Find the Marshallian demands for both goods.
b) Find the indirect utility function.
c) Verify the Roy’s identity.
d) Find the Hicksian demands for both goods.
e) Find the expenditure function.
f) Show the duality between Marshallian and Hicksian demand functions.
g) Are the good Marshallian substitutes / complements?
h) Are the goods normal goods?