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3 John lives in a world of two goods, A and B, and has a utility function given by U= min {A, B} John earns
3 John lives in a world of two goods, A and B, and has a utility function given by
U= min {A, B}
John earns an income of $6, and the price of good A is $1 and of good B is $2.
3.1 Find John's optimal consumption of good A.
3.2 Suppose John's income and prices of both goods all double simultaneously. John
will:
A. Change in his consumption of good A
B. Not change in his consumption of good A
C. Not enough information.
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