A consumer's preferences over quantities of goods x1,x2 20 are represented by the utility function u(1, a2) = min{2·x1, 2} It has initial endowment w=(3,8). The price of good 1 is given by p1>0 and the price of good 2 is given by p2=3. Note: For the optimal decision is 3(P, 18) "1 (P1, P2, m) = Pi +6 Which of the following statements is correct? a.The consumer's net demand for good 1 is given by d1(p1)=88+p1. b.The consumer's net supply of good 1 is given by s1(p1)=66+p1.
A consumer's preferences over quantities of goods x1,x2 20 are represented by the utility function u(1, a2) = min{2·x1, 2} It has initial endowment w=(3,8). The price of good 1 is given by p1>0 and the price of good 2 is given by p2=3. Note: For the optimal decision is 3(P, 18) "1 (P1, P2, m) = Pi +6 Which of the following statements is correct? a.The consumer's net demand for good 1 is given by d1(p1)=88+p1. b.The consumer's net supply of good 1 is given by s1(p1)=66+p1.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![A consumer's preferences over quantities of goods x1,x2 z20 are represented by the utility function
u(x1, 22) = min{2·x1, 22}
It has initial endowment w-(3,8). The price of good 1 is given by p1>0 and the price of good 2 is given by
p2=3.
Note: For the optimal decision is
3(P +8)
21 (P1, P2, m) =
Pi +6
Which of the following statements is correct?
a.The consumer's net demand for good 1 is given by d1(p1)=88+p1.
b.The consumer's net supply of good 1 is given by s1(p1)=66+p1.
CThe net demand of the consumer of good 1 decreases in pl1.
d.The net supply of the consumer of good 1 increases in p1.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3caab3d7-caa9-4397-b453-6bef89d56921%2F0bdc179e-5198-4b40-8c44-003288845f2f%2Feqpwac8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A consumer's preferences over quantities of goods x1,x2 z20 are represented by the utility function
u(x1, 22) = min{2·x1, 22}
It has initial endowment w-(3,8). The price of good 1 is given by p1>0 and the price of good 2 is given by
p2=3.
Note: For the optimal decision is
3(P +8)
21 (P1, P2, m) =
Pi +6
Which of the following statements is correct?
a.The consumer's net demand for good 1 is given by d1(p1)=88+p1.
b.The consumer's net supply of good 1 is given by s1(p1)=66+p1.
CThe net demand of the consumer of good 1 decreases in pl1.
d.The net supply of the consumer of good 1 increases in p1.
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