I du Play Video Sdnes Ully WICII 1115 you duguel di level done. TUI LIIS TASUII,...
I du Play Video Sdnes Ully WICII 1115 you duguel di level done. TUI LIIS TASUII, lle di Ways Duys Cadily two controllers with each purchase of a new gaming console. Otherwise he does not get any utility from owning consoles or controllers. a) Let Ii denote the number of consoles and x2 the number of controllers that Paul owns. Write a utility function u(x1,22) that expresses Paul's preferences over these goods. b) Let m denote the amount of money that Paul spends on consoles and controllers, and pi and p2 their respective per-unit prices. Find Paul's demand function for consoles, rim, P1, P2), and controllers X2(m, p1, p2). c) What is the sign of 8x1(m, P1, P2)/am (pos, neg, zero?)? What is the economic interpretation of this result? Are consoles a normal or an inferior good for Paul? d) What is the sign of Oxi(m, P1, P2)/apı? What is the economic interpretation of this result? e) What is the sign of axı(m, P1, P2) apa? What is the economic interpretation of this result? • For the remaining of the question, assume that m = 1,500, P2 = 25 and pi decreases from 450 to 250.