Question
Chris's preference is given by u(x1, x2) = min{x1,2x2}. Currently, prices arep= (2,6) and her income isI= 30. Is she better off if the price
Chris's preference is given by u(x1, x2) = min{x1,2x2}. Currently, prices arep= (2,6) and her income isI= 30. Is she better off if the price of good one is halved so thatp= (p1,p2), or if her income is doubled 2 to 2I? By how much (in terms of utility value) will she be better off?
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Portfolio Management In Practice Volume 1
Authors: CFA Institute
1 Edition
1119743699, 978-1119743699
