Question
The consumer's utility function is u(x1,x2) = (x1) (x2)^2 Graph his budget constraint for p1 = 3, p2 = 2 and M = 900, and
The consumer's utility function is u(x1,x2) = (x1) (x2)^2 Graph his budget constraint for p1 = 3, p2 = 2 and M = 900, and write down the equation for his budget line. Graph the locus of points for which the MRS of good 2 for good 1 is equal to 1, and the locus of points for which the MRS is equal to 2.
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a Budget constraint p1x1 p2x2 900 3x1 2x2 900 In ...
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
