Tina consumes only two goods , x and y, and her utility function is u(x1,x2) = x12+x22. (1) Find the demand function that solves first order conditions with budget constraint. (2) Please show that Tina's utility function is not convex. (3) Find the utility at the corner (spending all money on either x1 or x2) and compare the utility with the solution

Tina consumes only two goods , x and y, and her utility function is u(x1,x2) = x12+x22. (1) Find the demand function that solves first order conditions with budget constraint. (2) Please show that Tina's utility function is not convex. (3) Find the utility at the corner (spending all money on either x1 or x2) and compare the utility with the solution

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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