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Utility Assignment | Homework For You

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December 9th, 2019

If i have a utility function u(x1, x2) = x1^(1/2)x2^(1/2) . good 1 and good 2 be p1 and p2, and of course the consumer’s income be m.

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Homework For You

If the prices per unit for the two goods are p1=p2= $2 and the consumer’s income is m = $100. How can I calculate this optimal consumption bundle?

If the good 1 increases to p’1 = $4 per unit. What is the new optimal consumption bundle? Does it mean that i can just plug 4 instead of 2 for p1 previously^? Get Economics homework help today

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