Rita has the following quasilinear utility function: U(q1,92) = q,0.5 + q2. Suppose that the price of good 1 is 3 and that the price of good 2 is 34. If Rita's optimal bundle includes a positive amount of both goods, then her income has to be bigger than

Rita has the following quasilinear utility function: U(q1,92) = q,0.5 + q2. Suppose that the price of good 1 is 3 and that the price of good 2 is 34. If Rita's optimal bundle includes a positive amount of both goods, then her income has to be bigger than

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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