Question: Rationalizing a demand function I. Consider the demand function for which the consumer spends her entire wealth on the two goods and the ratio of

Rationalizing a demand function I. Consider the demand function for which

Rationalizing a demand function I. Consider the demand function for which the consumer spends her entire wealth on the two goods and the ratio of the amount spent on good 1 to the amount spent on good 2 is p2/p1. Show that the preference relation represented by the utility function x1+x2 rationalizes this demand function. Rationalizing a demand function I. Consider the demand function for which the consumer spends her entire wealth on the two goods and the ratio of the amount spent on good 1 to the amount spent on good 2 is p2/p1. Show that the preference relation represented by the utility function x1+x2 rationalizes this demand function

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