An individual consumes good X1 and X 2. Let W be the wealth of

An individual consumes good X1 and X 2. Let W be the wealth of individual and P1>0 , P2>0 be the prices of the goods. For each of the utility functions provide a real life example of two goods X1 and X 2 and satisfy them, draw the indifference curves, determine whether the preferences are convex, strictly convex or neithe, and compute the walrasian demand, indirect utility function, hicksian demand and expenditure function. A. U (X1, X2) = (X1^0.4)*(X2^0.3). B. U(X1,X2) = 2min (X1,X2) +4max(X1,X2)​


Leave a Reply

Your email address will not be published. Required fields are marked *