Jess has the utility function U(x₁, x₂) = min{3x1, 6x2}. The price of x₁ is px₁, Px₂, and his income is m. 1. Find Jess's optimal bundle x* and x as a function of Px₁, P₂, and m. 2. What's the proportion of consumption amounts between x and x? In other words, find 3. Suppose instead the utility function is U(x₁, x2) = min{2x₁, 3/3}. Without solving for the x* the price of x2 is .
Jess has the utility function U(x₁, x₂) = min{3x1, 6x2}. The price of x₁ is px₁, Px₂, and his income is m. 1. Find Jess's optimal bundle x* and x as a function of Px₁, P₂, and m. 2. What's the proportion of consumption amounts between x and x? In other words, find 3. Suppose instead the utility function is U(x₁, x2) = min{2x₁, 3/3}. Without solving for the x* the price of x2 is .
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 6QP
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![Question 6:
Jess has the utility function U(x₁, x2) = min{3x₁, 6x2}. The price of x₁ is px₁, the price of x₂ is
Px₂, and his income is m.
1. Find Jess's optimal bundle x† and x as a function of px₁ › Px2, and m.
2. What's the proportion of consumption amounts between x and x? In other words, find
3. Suppose instead the utility function is U(x₁, x2) = min{2x₁, 3}. Without solving for the
optimal bundles, what's the proportion of consumption amounts between x and x, i.e. ?
x+
x2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe02838e7-dc45-4607-88b3-6692c936110a%2F93efc708-4f3b-4709-a5ed-b658f5489f90%2Fjfy55t_processed.png&w=3840&q=75)
Transcribed Image Text:Question 6:
Jess has the utility function U(x₁, x2) = min{3x₁, 6x2}. The price of x₁ is px₁, the price of x₂ is
Px₂, and his income is m.
1. Find Jess's optimal bundle x† and x as a function of px₁ › Px2, and m.
2. What's the proportion of consumption amounts between x and x? In other words, find
3. Suppose instead the utility function is U(x₁, x2) = min{2x₁, 3}. Without solving for the
optimal bundles, what's the proportion of consumption amounts between x and x, i.e. ?
x+
x2
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