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2. Claudio's utility function is U = 5X9.7X0.3 Furthermore, it is known that his income and prices are: m = 200, P1 = 5, P2
2. Claudio's utility function is U = 5X9.7X0.3 Furthermore, it is known that his income and prices are: m = 200, P1 = 5, P2 = 10, respectively. a) What are the quantities demanded of X1 and X2 that maximize his utility? "Graphically "your answer b) If Claudio is offered two promotions: - Buy a coupon book for $50 that entitles you to consume 12 units of X1, or, - Buy a pack of 5 units of X1 with a 20% discount on the price. What would be his decision? c) If they offer the same promotion to Teresa, Claudio's sister, who has the same income and faces the same prices and is always willing to exchange 2 units of X1 for 1 unit of X2. What would be his decision
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