Suppose Alex's utility function is given by U(x1, X2) = 8x2 + 2x2, and con- sider their Hicksian demand for x1, denoted hi(P1, p2, U).
Suppose Alex's utility function is given by U(x1, X2) = 8x2 + 2x2, and con- sider their Hicksian demand for x1, denoted hi(P1, p2, U). If U = 2, p1 = 5, and p2 = 5, then what is the value of hi(P1, p2, U)? (a) 1 (b) 1 16 (c) 2 (d) 4 (e) None of the other solutions are correct
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