Jack has utility of U(x1, x2) = max{3x1 , 4x2} of purchasing products 1 and 2. Melis has an initial endowment of (ω1 ,ω2
Posted: Sun May 29, 2022 7:10 pm
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.
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.