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Problem associated with fourth video: demand with perfect substitutes Consider the following utility function u(x1, x2) = 2x1 + x2.

(a) Calculate the MRS for this utility function. Does it depend on x1 and x2. (b) Given an income m and prices p1 and p2 derive the demand function for good 1. Represent it graphically (x1 in the horizontal axis and p1 in the vertical axis).

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91520317

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