David consumes two things: gasoline
(q 1q1)
and bread
(q 2q2).
David's utility function is
U(q 1q1,
q 2q2)equals=100100q 1 Superscript 0.2 Baseline q 2 Superscript 0.8q10.2q20.8.
Let the price of gasoline be
p 1p1,
the price of bread be
p 2p2,
and income be Y.
Part 2
Derive David's demand curve for gasoline.
Part 3
David's demand for gasoline is