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When the utility function is U(x 1 ,x 2 ) = x 1 + x 2 , and the budget constraint is p 1 x
When the utility function is U(x1,x2) = x1 + x2, and the budget constraint is p1x1 + p2x2 I, and each variable has a non-negativity constraint, use the Kuhn-Tucker condition to find the amount of consumption that maximizes the utility.
In addition to the previous problem, the upper bound of x2 is K. i.e., 0 x2 K. What's the answer in this case?
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