Question: For a consumer whose preferences are represented by the utility function u(x1, x2) = x1 +x2 and a budget constraint p1x1 +x2 = m how
For a consumer whose preferences are represented by the utility function u(x1, x2) = x1 +x2 and a budget constraint p1x1 +x2 = m how much more income does she need to compensate her for a doubling of p1. In this example p2 is always equal to 1.
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