=+B. Suppose there are two types of consumers: Consumer type 1 has utility function u 1 1x,

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=+B. Suppose there are two types of consumers: Consumer type 1 has utility function u 1

1x, y2 5 50x 1/2 1 y, and consumer type 2 has utility function u 2

1x, y2 5 10x 3/4 1 y. Suppose further that consumer type 1 has income of 800 and consumer type 2 has income of 1,200.

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