A consumer has preferences represented by the utility function U(x₁, x₂)=10(x²₁ + 2x₁x₂ - x²₂)-0 50.For this consumer, goods 1 and 2 are perfect substitutes.

Name: A consumer has preferences represented by the utility function U(x 1 , x 2 )=10(x 2 1 + 2x 1 x 2 - x 2 2 )-0 50.For this consumer, goods 1 and 2 are perfect substitutes.
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Question

Quizplus · Accepted Answer

The utility function is of the form U(x1,x2) = ax1 + bx2, which is the utility function for perfect substitutes.

A Consumer Has Preferences Represented by the Utility Function U(x1

A Consumer Has Preferences Represented by the Utility Function U(x₁