Sven can buy two goods x and y where his marginal benefits are MUx and MUy and

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Sven can buy two goods x and y where his marginal benefits are MUx and MUy and the prices are called Px and Py. What is the condition for optimal consumption? Why is the shopping cart optimal? Show utility maximization in a figure with budget restriction and indifference curves. Suppose the price of product x rises. Show a situation where the income effect and the substitution effect are equal.

Posted Date: Jun 23, 2024 10:01 AM

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Sven can buy two goods x and y where his marginal benefits are MUx and MUy and

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