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You now have two equations, the budget equation (m=x 1 p 1 +x 2 p 2 )and the tangency conditions (x 1 * =2m/3p 1
You now have two equations, the budget equation (m=x1p1+x2p2)and the tangency conditions (x1*=2m/3p1 and x2*=m/3p2)that must be satisfied by the bundle demanded.
Find his demand functions for good 1, x1(p1, p2, m) and good 2, x2(p1, p2, m).
- x1(p1, p2, y) =
- x2(p1, p2, y) =
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