Consider a consumer whose utility function is u($1, X2) = xi * x5 Where, UM1 = c . xc- 1) . x4 UM2 = d
Consider a consumer whose utility function is u($1, X2) = xi * x5 Where, UM1 = c . xc- 1) . x4 UM2 = d . x . x, d - 1) Also suppose that : C = 6 d=2 P1=41 P2=48 m=823 a. What is the aggregate demand of 1? b. What is the aggregate demand of 2? c. Determine the demand function of 1 : 1 (P1, P2, m) d. Show the process to obtain the demand function of $1? e. Determine the demand function of $2 : 2 (P1, P2, m) f. Show the process to obtain the demand function of $2
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