Let u(x,y) = x^2 + y^2. (a) Use the bundles (5, 0) and (0, 4) to show
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Question:
Let u(x,y) = x^2 + y^2.
(a) Use the bundles (5, 0) and (0, 4) to show that these preferences are not strictly convex.
(b) Will the consumer choose a bundle on the budget line?
(c) What bundles are optimal if the prices are equal to $1 each and the income is $10?
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
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