An individual consumes goods , and 2. Let w be the wealth of individual and p,> 0 and p2 > 0 be the prices of the goods. For each of the following utility functions provide a real life example of two goods , and 22 that satisfy them, draw the indifference curves, determine whether preferences are convex, strictly convex or neither, and compute the Walrasian demand, indirect utility function, Hicksian demand and expenditure function: a. U(x1, x2) min{2x1, x2} = b U(1 2)= max{2x1 2}

An individual consumes goods , and 2. Let w be the wealth of individual and p,> 0 and p2 > 0 be the prices of the goods. For each of the following utility functions provide a real life example of two goods , and 22 that satisfy them, draw the indifference curves, determine whether preferences are convex, strictly convex or neither, and compute the Walrasian demand, indirect utility function, Hicksian demand and expenditure function: a. U(x1, x2) min{2x1, x2} = b U(1 2)= max{2x1 2}

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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