Question
Suppose a consumer's preferences over commodities 1 and 2 can be represented by the utility function( 1 , 2 ) = min{ 1 , 2
Suppose a consumer's preferences over commodities 1 and 2 can be represented by the utility function(1,2) = min{1,2}, where1,2 0. The prices of the two commodities are 1 and 2 respectively and the consumer's income is 150.
The equation of the income expansion path for the consumer is
Max. score: 4; Neg. score: 0
- =
- +=
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- None of these
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Understanding Econometrics With Economic Applications
Authors: Dennis Halcoussis
1st Edition
0030348064, 9780030348068
