Question 3 (Demand). Carlos really likes pizza. His utility function for Little Caesar's (x₁) and Woodstock's (x₂) is given by: U(X1, X2) The price of x₂ is $10 and Carlos spends $50 on pizza. = x1+2x2
Question 3 (Demand). Carlos really likes pizza. His utility function for Little Caesar's (x₁) and Woodstock's (x₂) is given by: U(X1, X2) The price of x₂ is $10 and Carlos spends $50 on pizza. = x1+2x2
Chapter1: Making Economics Decisions
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Transcribed Image Text:Question 3 (Demand). Carlos really likes pizza. His utility function for Little Caesar's (x₁) and Woodstock's (x₂) is
given by:
U(X1, X2) = X1+2x2
The price of x2 is $10 and Carlos spends $50 on pizza.
# 6
a)
Graph the demand curve for x₁, with p₁ (the price of x₁) on the y-axis and x, on the x-axis. (Hint: There
will be a range of prices where the demand for x₁ will be 0). Explain you graph.
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