Question
Consider two goods, and 2 where the price of x is $10 and the price of x2 is $20. The consumer's income is $200
Consider two goods, and 2 where the price of x is $10 and the price of x2 is $20. The consumer's income is $200 and the utility function is below: U (x, x) = x(x + 1) (1) How much of and 2 will the consumer choose? Solve mathematically and show all work. Draw budget line and utility function. Label all axis and choice set. (20 points). Hint: MU = x + 1; MU = x1
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
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