Max has the utility function U(x1,x2) = x1(x2+2)
(a) If the price of x1 is 2, the price of x2 is 1, and Max's income is 10, how much x1 will Max consume? How much x2?
(b) Suppose that Max's income level is 10. Derive Max's demand function for x1. Is x2 a substitute of x1 or a complement of it? (Be sure to show your calculations.)