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Suppose Emma consumes only two goods, X1 and X2, and her utility function is given by U=5X1X2. Suppose at present she is
Posted: Sat Feb 19, 2022 2:41 pm
by answerhappygod
- Suppose Emma Consumes Only Two Goods X1 And X2 And Her Utility Function Is Given By U 5x1x2 Suppose At Present She Is 1 (69.99 KiB) Viewed 73 times
Suppose Emma consumes only two goods, X1 and X2, and her utility function is given by U=5X1X2. Suppose at present she is consuming 12 units of X1 and 8 units of X2 and that both goods have a fixed price of 5. In order to increase her utility, Emma should: stop consuming X2 switch consumption from X2 to X1 do nothing, she is already maximising utility switch consumption from X1 to X2 not enough information to answer