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Question 1 Ann lives in a two-good world. Her preferences are represented by the utility function (11;12) = (3:1)2 + 2351372 + (3(2):: where x1
Question 1 Ann lives in a two-good world. Her preferences are represented by the utility function \"(11;12) = (3:1)2 + 2351372 + (3(2):: where x1 denotes her consumption of good 1 and x2 denotes her consumption of good 2. Ann's income is m 2::- 0, p1 denotes the unit price of good 1, and p2 denotes the unit price of good 2. [21) Draw a few of Ann's indifference curves. (b) Derive Ann's demand for good 1 as a mction of m, 111, and p2
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