Liwei consumes X₁ and x2 together in fixed proportions. She always consumes 2 units of X₁ for 1 unit x₂. One utility function that describes her preferences is: u(x1, x2) = 2x1 + x2. u(x1, x2) = min{2x1, x2}. O u(x₁, x₂) = min{x₁/2, x₂). u(x1, x2) = 2x1 + 4x2. O u(x1, x2) = 2x1x2.

Liwei consumes X₁ and x2 together in fixed proportions. She always consumes 2 units of X₁ for 1 unit x₂. One utility function that describes her preferences is: u(x1, x2) = 2x1 + x2. u(x1, x2) = min{2x1, x2}. O u(x₁, x₂) = min{x₁/2, x₂). u(x1, x2) = 2x1 + 4x2. O u(x1, x2) = 2x1x2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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