Solution: Consider the problem of maximizing u=(x_1 x_2)^2 subject to p_1 x_1+ p_2 x_2=y. Derive the Marshallian demand functions and the indirect utility


Question: Consider the problem of maximizing \(u=\left(x_{1} x_{2}\right)^{2}\) subject to \(p_{1} x_{1}+\) \(p_{2} x_{2}=y\). Derive the Marshallian demand functions and the indirect utility function; and confirm that Roy's identity holds.

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