Solution-Suppose a consumer has a utility function

Suppose a consumer has a utility function

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Reference no: EM131220336

Suppose a consumer has a utility function: u( x1 , x2) = min {x1, 2x2},

i.) Prove that the set of bundles ( x1, x2) = min {x1, 2x2} ≥ 10 is a convex set.

ii.) Prove that, for any bundles (x1, x₂) and (y₁, y₂), the utility function satisfies:

u( x1/2 + y₁/2 , x2/2 +y₂/2 ) ≥ min { u(x1, x2) , u(y₁ , y₂)}

Reference no: EM131220336

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Suppose a consumer has a utility function

Reference no: EM131220336

Reference no: EM131220336

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