Question a consumer has the following utility function, Ask an Expert

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Question: A consumer has the following utility function: U(x1,x2)=ln(x1)+2*ln(x2), where ‘ln' stands for the natural logarithm. Reminder - the derivate of ln(x1) with respect to x1 is 1/x1.

a. Calculate the demand function for x2.

b. Is x2 normal or inferior? Explain.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M93121158

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