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# a) When Alice chooses an optimal bundle of bread and butter in Town B, her??? 1,2 at that bundle is _____ b) If Alice is

a) When Alice chooses an optimal bundle of bread and butter in Town B, her???

1,2 at that bundle is _____

b) If Alice is exactly as satisfied with her optimal bundle in Town B as she was with her optimal bundle in Town A, this means that?=___?

Alice only consumes bread (x] ) and butter (x2 ). Her preferences over these goods are represented by u(X] , x2 ) = x] X2 ". Alice used to live in Town A. There, she had an income of m = 12 and faced prices p, = 1 and p2 = 2. Now, Alive lives in Town B, where her income is still m = 12 but prices are p1 = 6 and p2 = 1. If rounding is needed, please round to 3 decimal places## Step by Step Solution

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