Question
Consider a consumer whose preferences between goods 1 and 2 are represented by the utility function u(x1, x2) = 3x1 + x2. a. What type
Consider a consumer whose preferences between goods 1 and 2 are represented by the utility function u(x1, x2) = 3x1 + x2.
a. What type of goods are goods 1 and 2 for this consumer?
b. Derive this consumer's demand function for good 1 and sketch it. Make sure to label all relevant points.
c. Fix p1 = $1 and p2 = $1. What is the equation of the Engel curve for good 1?
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Microeconomics
Authors: Robert S. Pindyck, Daniel L. Rubinfeld
7th edition
8131725995, 8131725993, 978-8131725993
