An individual consumes goods , and 2. Let w be the wealth of individual and p,> 0 and p2 > 0 be the prices of the goods. For each of the following utility functions provide a real life example of two goods , and 22 that satisfy them, draw the indifference curves, determine whether preferences are convex, strictly convex or neither, and compute the Walrasian demand, indirect utility function, Hicksian demand and expenditure function: a. U(x1, x2) min{2x1, x2} = b U(1 2)= max{2x1 2}

An individual consumes goods , and 2. Let w be the wealth of individual and p,> 0 and p2 > 0 be the prices of the goods. For each of the following utility functions provide a real life example of two goods , and 22 that satisfy them, draw the indifference curves, determine whether preferences are convex, strictly convex or neither, and compute the Walrasian demand, indirect utility function, Hicksian demand and expenditure function: a. U(x1, x2) min{2x1, x2} = b U(1 2)= max{2x1 2}

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.11P

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