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A student proposed a utility function as follows: ( 1, 2)= 2 1 + 2 2 Part a Graphically show that this proposed utility function
A student proposed a utility function as follows: (1,2)=21+22
Part a
Graphicallyshow that this proposed utility function violatesaverage is better than extreme.
Part b
Graphicallyshow that for this utility function, thetangency conditiondoes not lead to the optimum given prices(1 , 2) = (2 , 1) and = 3
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