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Jerry likes both bananas and apples. He thinks that 1 banana is as good as 2 apples. Suppose the income is M and prices are
Jerry likes both bananas and apples. He thinks that 1 banana is as good as 2 apples. Suppose the income is M and prices are P1 and P2 for commodity 1 and 2, respectively. X1 is the consumption of bananas and X2 is the consumption of apples.
Write down a utility function that can represent his preference.
Write down the consumer's maximization problem.
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