=+B. Suppose your and my tastes can be represented by the CobbDouglas utility function u1x1 , x2

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=+B. Suppose your and my tastes can be represented by the Cobb–Douglas utility function u1x1

, x2 2 5 x1 0.5x2 0.5

, and suppose we both have income I 5 100. Let pizza be denoted by x1 and “other goods” by x2

, and let the price of pizza be denoted by p. (Since “other goods” are denominated in dollars, the price of x2 is implicitly set to 1.)

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Microeconomics An Intuitive Approach With Calculus

ISBN: 9781337335652,9781337027632

2nd Edition

Authors: Thomas Nechyba

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Question Posted: Nov 04, 2024 05:00 AM

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=+B. Suppose your and my tastes can be represented by the CobbDouglas utility function u1x1 , x2

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Microeconomics An Intuitive Approach With Calculus

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