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 .

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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