Isi 2008 question: Please check solution

[RichaS]

a) Demand for good xi = M/pi  if  pi< all p's
                                     0       if pi> any p




b) xi= M/(p1+p2+...+pn)

    Price elasticity= -pi/(p1+p2+..pn)

Is this correct?

[Abhitesh]

Almost correct.
In part (a) you may also consider the case when two or more prices are equal and these are less than all other prices.

[RichaS]

Thankyou. In that case too the answer will be the same? Because the consumer will still choose to spend all his income on one of the two goods for maximum utility?

[Abhitesh]

That sounds correct.