Suppose the optimal demand for two goods 1 and 2 is characterized by the relation x1= 2*x2, no matter what the person’s income. Give a utility function compatible with these preferences! What is the demand function for each good?
Suppose the optimal demand for two goods 1 and 2 is characterized by the relation x1= 2*x2, no matter what the person’s income. Give a utility function compatible with these preferences! What is the demand function for each good?
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.11P
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