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Max has the utility function U(x1,x2)= x1(x2+2) a. If the price of good 1 is $2, the price of good 2 is $1, and Max's income is $10, how much good 1 will Max consume? b. Suppose that Max's income level is $10. Derive Max's demand function for good 1 (as a function of the prices of good 1 and good 2). Is good 1 a substitute of good 2 or a complement of it?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9678401

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