Question 4: Suppose we have two people in the market: A, B. Their utility functions are UA = min{ X1, X2), UB = min{x1, 2}. Solve their optimal choices and then find market demand.
Question 4: Suppose we have two people in the market: A, B. Their utility functions are UA = min{ X1, X2), UB = min{x1, 2}. Solve their optimal choices and then find market demand.
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 1P
Question
Transcribed Image Text:Question 4:
Suppose we have two people in the market: A, B. Their utility functions are UA = min{
X1, X2), UB = min{x1, 2}. Solve their optimal choices and then find market demand.
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