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Microeconomics A Contemporary Intro

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 8QFR

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An agent consumes quantity (x1,X2) of goods 1 and 2. Here is his utility function: U(x1, x2) =
Vx1 + 2 *
x2, his budget constraint is p1x1+p2x2 = m.
a. Calculate the agent's Marshallian demand (x*1 , x*2 ).
b. When would the agent's consumer's problem have a corner solution?

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An agent consumes quantity (x1,x2) of goods 1 and 2. Here is his utility function: U(x1, x2) = √x1 + 2 ∗ x2, his budget constraint is p1x1+p2x2 = m. a. Calculate the agent’s Marshallian demand (x*1 , x*2 ). b. When would the agent’s consumer’s problem have a corner solution?
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