Question:
A consumer has utility function π’(π₯1, π₯2 ) = max {0.5 π₯1 , 0.5 π₯2} + min{π₯1 , π₯2}.
She has some positive income π¦, and faces positive prices π1, π2 for goods 1 and 2 respectively. Suppose π2 = 1. There exists a lowest price πΜ
Μ
1 such that if π1 > πΜ
Μ
1 then the unique utility maximizing choice is to buy ONLY good 2. Then πΜ
Μ
1 is _________ (in integer).
A consumer has utility function π’(π₯1, π₯2 ) = max {0.5 π₯1 , 0.5 π₯2} + min{π₯1 , π₯2}.
She has some positive income π¦, and faces positive prices π1, π2 for goods 1 and 2 respectively. Suppose π2 = 1. There exists a lowest price πΜ Μ 1 such that if π1 > πΜ Μ 1 then the unique utility maximizing choice is to buy ONLY good 2. Then πΜ Μ 1 is _________ (in integer).
She has some positive income π¦, and faces positive prices π1, π2 for goods 1 and 2 respectively. Suppose π2 = 1. There exists a lowest price πΜ Μ 1 such that if π1 > πΜ Μ 1 then the unique utility maximizing choice is to buy ONLY good 2. Then πΜ Μ 1 is _________ (in integer).
Updated On: Oct 1, 2024
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Correct Answer: 2
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The correct answer is: 2
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