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optimization theory Erercise 3.1: Rationing Suppose a consumer has the utility function U(71, $2, 23) = 01 In(x1) + 02 In(12) + 03 In(13), (3.21)

optimization theory

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Erercise 3.1: Rationing Suppose a consumer has the utility function U(71, $2, 23) = 01 In(x1) + 02 In(12) + 03 In(13), (3.21) where the a; are positive constants summing to one. The budget constraint is PIXI + P2 22 + P3 23

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