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In: Economics

An individual has the following utility function: ?(??,?? ) = ???(??,???) and the following information: ??...

An individual has the following utility function: ?(??,?? ) = ???(??,???) and the following information: ?? = ?, ?? = ?, ?????? = ??? (Use good 1 in the x-axis and good 2 in the y-axis) a. (10 points) Write the budget constraint equation, draw the budget line in a graph; b. (10 points) Find the optimal basket for the individual on the same graph where you have the budget line.

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Rahul Sunny answered 1 year ago
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