Cookie monster consumes ores good 2 price p2 and homemade, Ask an Expert

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Cookie Monster consumes Ores (good 2, price p2) and homemade chocolate chip cookies that he buys from his mom (good 1, price p1). His utility function is u(x1, x2)=ln(x1+x2)+x1. A backstory for these preferences might be that he cares about total calories which he needs to survive, and joy. oreos and chocolate chip cookies are perfect substitutes in providing calories-the x1+x2 term-but only homemade chocolate cookies give him joy (the second term). His income is Y. a.) Suppose p2

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Business Economics, Economics

Category:- Business Economics
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