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Suppose Anne has preferences that can be represented by the utility function u(x1, x2) = ] + x2. She faces prices p1 = 0.25, p2
Suppose Anne has preferences that can be represented by the utility function u(x1, x2) = ] + x2. She faces prices p1 = 0.25, p2 = 1 and has income m > 0. If rounding is needed, please round to 3 decimal places. a) When she optimally chooses to consume positive quantities of both goods, Anne consumes how many units of good 1? E b) Anne optimally chooses to consume positive quantities of both goods when m > [ll in the blank)
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