E. Show that if Mr. Green is forced to spend a fixed amount of his income on a particular good, his utility level will be lower than if he could freely allocate his income.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter10: Consumer Choice Theory
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2. Show that if Mr. Green is forced to spend a fixed amount of his income on
a particular good, his utility level will be lower than if he could freely
allocate his income.
Transcribed Image Text:2. Show that if Mr. Green is forced to spend a fixed amount of his income on a particular good, his utility level will be lower than if he could freely allocate his income.
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