Consumer preference is give by u(X1, X2) = max{α1X1, α2X2} • Plot indifference curves • Derive...

Consumer preference is give by u(X₁, X₂) = max{α₁X₁, α₂X₂}

• Plot indifference curves
• Derive demand functions
• Derive the expenditure function

Solutions

Expert Solution

^ we get such an EITHER-OR kind of optimal choice because utility function is CONCAVE in this case

Rahul Sunny answered 1 year ago

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