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Utility Assignment | Homework For You

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December 9th, 2019

Let’s say I have a utility function u(x1,x2) = x1^(1/2)x2^(1/2) . The prices of good 1 and good 2 are p1 and p2, and of course let the consumer’s income be m.

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How can i know if good 1 is ordinary or Giffen? Is good 1 normal or inferior? Is good 1 luxury or necessary? How can i explain this? im not sure about the differences. all i know is that giffen is positively correlated..meaning if the demand for a good goes up, so does the price. Get Economics homework help today

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