Question: The optimization problem below indicates a utility maximization problem for Emma, where x 1 and x 2 denote her demand for good 1 and 2
The optimization problem below indicates a utility maximization problem for
Emma, where and denote her demand for good and respectively.
Which the following statements not true?
subject
Emma's utility function not concave but quasiconcave.
The marginal utility extra dollar Emma utils.
When her income doubles, demand for good and both increase.
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