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 of the following statements is not true?
subject
Emma's utility function is not concave but quasiconcave.
At Emma is willing to give up as much as units of good in order to obtain units of good
For utility maximization, Emma would consume
The marginal utility of an extra dollar to Emma is utils.
When her income doubles, demand for good and both increase.
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