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Utility (B,H) = B+ 12H over burgers and hot dogs. Prices are B = $5 H = $10 Income is . Will they consume positive
Utility (B,H) = B+ 12H over burgers and hot dogs. Prices are B = $5 H = $10 Income is . Will they consume positive amounts of both goods, regardless of of income? If so, explain why. If not, for which income levels will they consume one of the burgers or hot dogs and which one? b. Suppose the hot dog price rises to H = $15. Explain the logic of the the two competing effects that help us understand whether the burger consumption will rise or fall. Which effect dominates in this case?
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