Question: 6.4 Explain why c/pbt = 0. Is it also true here that c/pb and c/pt are equal to 0? A pensioner allocates her budget between
6.4 Explain why ∂c/∂pbt = 0.
Is it also true here that ∂c/∂pb and ∂c/∂pt are equal to 0?
A pensioner allocates her budget between three commod ities, bread (b), tuna (t) and prune juice (p). If the ratio of the price of tuna to bread is a constant pt pb
:
a.
b.
c.
d.
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