Question
Murphy's utility function is u(x1, x2) = min{2x1+2x2, x1+4x2}. Murphy is consuming 12 units of good 1 and 6 units of good 2. (1) Draw
Murphy's utility function is u(x1, x2) = min{2x1+2x2, x1+4x2}. Murphy is consuming 12 units of good 1 and 6 units of good 2. (1) Draw the indifference curve through this point. (2) The price of good 1 is $1. What is the highest possible price for good 2?
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World Economic And Social Survey 2012 In Search Of New Development Finance
Authors: United Nations Department Of Economic And Social Affairs
1st Edition
9210555112, 9789210555111
