Question: Please can you help me with this, it is a 50 mark question and from a past exam paper that I don't understand. Therefore please
Please can you help me with this, it is a 50 mark question and from a past exam paper that I don't understand. Therefore please could you explain it, I will leave a great review!
Consider the utility function of a consumer who obtains utility from consuming only two goods, 1 and 2 , in fixed proportions. Specifically, the utility of the consumer requires the consumption of two units of 2 for each unit of 1. A.
i. Report the mathematical expression of the utility function of the consumer. ii. Provide a diagram of the corresponding indifference curves. iii. Provide at least one example and economic intuition. Suppose that the consumer has available income equal to Y, and the price of the goods is respectively 1 and 2.
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