Course let the consumer income

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Reference no: EM132314698

Let's say I have a utility function u(x1,x2) = x1^(1/2)x2^(1/2).

The prices of good 1 and good 2 are p1 and p2, and of course let the consumer's income be m.

I've already figured out that it is an ordinanry good. But how can i see if good 1 normal or inferior or if good 1 luxury or necessary? How can i understand this?

Reference no: EM132314698

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