Question: Problem 3 Consider the utility function U(x1, X2) = min (x1, 2x2}. a) Determine the optimal consumption plan of the consumer if I = 10,

 Problem 3 Consider the utility function U(x1, X2) = min (x1,

2x2}. a) Determine the optimal consumption plan of the consumer if I

Problem 3 Consider the utility function U(x1, X2) = min (x1, 2x2}. a) Determine the optimal consumption plan of the consumer if I = 10, P1 = 1, p2 = 3. b) Determine the increase in income which would compensate the con- sumer for an increase of the price of commodity 1 from 1 to 2. c) Could you find prices of the two commodities and an income level such that the optimal choice of the consumer is at = 1, x5 = 1? Why

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