.Determine the truth of the proposition When the utility of good x1 is -6 and the...

 

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.Determine the truth of the proposition "When the utility of good x1 is -6 and the utility of good x2 is 5, good x1 is a non-good" and explain it. 2. Let U(x1,x2) = 4x1/2x2 be the utility function for a consumer who consumes only two goods. each good 1 When the price of is pl = 15, p2 = 10, and the income of this consumer is m = 120, answer the following question. a. Find this consumer's optimal consumption, (x* 1,X*2). b. Derive the individual demand curve for each good. c. Does every point on this consumer's individual demand curve satisfy the utility maximization? Explain this. d. Because this consumer is happy, the utility function changes to U^(x1,x2) = 8x1/2x2. Choi 1 How does redundancy change? .Determine the truth of the proposition "When the utility of good x1 is -6 and the utility of good x2 is 5, good x1 is a non-good" and explain it. 2. Let U(x1,x2) = 4x1/2x2 be the utility function for a consumer who consumes only two goods. each good 1 When the price of is pl = 15, p2 = 10, and the income of this consumer is m = 120, answer the following question. a. Find this consumer's optimal consumption, (x* 1,X*2). b. Derive the individual demand curve for each good. c. Does every point on this consumer's individual demand curve satisfy the utility maximization? Explain this. d. Because this consumer is happy, the utility function changes to U^(x1,x2) = 8x1/2x2. Choi 1 How does redundancy change?

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1 The proposition When the utility of good xl is 6 and the utility of good x2 is 5 good x1 is a nongood is false A nongood is a good that a consumer d... View the full answer