Question
A consumer has utility function given by :
u{x1,x2} = min {2x1+x2, x1+2x2}. Given income m = 100, prices p1 = 20, p2 = 30, the amount of x1 in her utility maximizing bundle is:Solution
2x1+x2 = x1+2x2 S0, x1 = x2 Equate x1=x2 then put this in budget line. Solve for equilibrium bundle of x1 and x2. So, 20x1 + 30x2 = 100 50x1 = 100
X1 = 2 = x2
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