Question: Solve clearly 2. Consider the following utility function: U(Qc, QF) = (Q2 + QF), p 2. Consider the following utility function: [J(Qc, QF) (QPC +

Solve clearly

2. Consider the following utility function: U(Qc, QF) = (Q2 + QF), p

2. Consider the following utility function: [J(Qc, QF) (QPC + QPF)Z , Derive the relative demand for two goods as a function of relative prices pc/pF. What happens to the relative demand as p decreases? What is the effect of p on the preferences that leads to such changes in the relative demand? Endowment as a source of compamtive advantage

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