(a) \$'s of A (b) other gasoline S's of other *1 is quasilinear goods goods slope =-p' B slope = - p' slope = - p slope = - P slope _- p' slope = -
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Question

Suppose the tested can be modeled with the quasilinear utility function u(x,x) = alnx + x. Verify a generalization

of the intuition from follow graph that demand function and compensated demand function are identical for x1 in this case.  (a)
\$'s of A
(b)
other
gasoline
S's of
other
*1 is quasilinear
goods
goods
slope =-p'
B slope = - p'
slope = - p
slope = - P
slope _- p'
slope = - p&quot;
gallons
0
compensated of gasoline
compensated
budget
budget
PIA
P14
B
A JOB = C
D (14 ) =MWTP(UA)
MWTP/UA
94
gallons
0
of gasoline

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