Jack has utility of U(x1, x2) = max{3x1 , 4x2} of purchasing products 1 and 2. Melis has an initial endowment of (ω1 ,ω2

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answerhappygod
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Jack has utility of U(x1, x2) = max{3x1 , 4x2} of purchasing products 1 and 2. Melis has an initial endowment of (ω1 ,ω2

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Jack has utility of U(x1, x2) = max{3x1 ,
4x2} of purchasing products 1 and 2. Melis has an
initial endowment of (ω1 ,ω2) = (40,40),
and initial prices are 4 and 10 for products 1 and 2,
respectively. When prices change and 4TL for both products, find
the pure substitution, income and endowment effects for Jack.
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