Suppose there are 2 commodities ( good x and good y( and the consumer faces the following prices, The price of commodity x is $1 each. The price of commodity y is $2 each if strictly less than 2 units are purchased. If 2 or more units the price is $1.50. If the consumer has income of $10 show that the budget faced by the consumer is not a convex set

Suppose there are 2 commodities ( good x and good y( and the consumer faces the following prices, The price of commodity x is $1 each. The price of commodity y is $2 each if strictly less than 2 units are purchased. If 2 or more units the price is $1.50. If the consumer has income of $10 show that the budget faced by the consumer is not a convex set

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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