Home / Questions / A consumer has the utility function u(x1, x2) = min{21, 2x2}. The prices of the goods $2. ...
A consumer has the utility function u(x1, x2) = min{21, 2x2}. The prices of the goods $2. Currently, he has the bundle (x1, x2) = (5,2). If he was given an additional dollar, it would be optimal to spend it entirely on good 1 b. spend it entirely on good 2 spend some of it on good 1 and some of it on good 2 not spend it as he cannot increase his utility none of the above
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