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Suppose Daisy's preference is represented by the utility function u(x1, x2) = max{2x1, x2}. Compute Daisy's demand of the first good as a function of
Suppose Daisy's preference is represented by the utility function u(x1, x2) = max{2x1, x2}. Compute Daisy's demand of the first good as a function of p1 when p2 = 1 and m = 20. Note that this question is a bit different from the first three, as you have to compute Daisy's optimal choice for each p1
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Macroeconomics Principles, Problems, & Policies
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
20th Edition
0077660773, 9780077660772
