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2 Quasilinear utility An agent has quasilinear utility U (:17) = ln 9:1 + m2 over X = R1. Goods have linear prices 191 =
2 Quasilinear utility An agent has quasilinear utility U (:17) = ln 9:1 + m2 over X = R1. Goods have linear prices 191 = 0.5 and p2 = 1. 1. Suppose the agent has wealth to = 1. Calculate the agent's optimal consumption bundle. 2. Redo the analyis of the previous part assuming instead that w = 10. 3. At What wealth level does the agent begin purchasing good 2
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