Suppose your tastes can be represented by the utility function $u \left( x _ { 1 } , x _ { 2 } \right) = x _ { 1 } ^ { 1 / 2 } + x _ { 2 } ^ { 1 / 2 }$ .Your demand function for $x _ { 1 }$ is a. $\frac { I } { 2 p _ { 1 } }$.
c. $\frac { I } { p _ { 1 } + p _ { 2 } }$.
b. $\frac { p _ { 2 } I } { p _ { 1 } \left( p _ { 1 } + p _ { 2 } \right) }$
d. $\frac { I } { p _ { 1 } }$ if $p _ { 1 }

Question

Suppose your tastes can be represented by the utility function $u \left( x _ { 1 } , x _ { 2 } \right) = x _ { 1 } ^ { 1 / 2 } + x _ { 2 } ^ { 1 / 2 }$ .Your demand function for $x _ { 1 }$ is a. $\frac { I } { 2 p _ { 1 } }$.
c. $\frac { I } { p _ { 1 } + p _ { 2 } }$.
b. $\frac { p _ { 2 } I } { p _ { 1 } \left( p _ { 1 } + p _ { 2 } \right) }$
d. $\frac { I } { p _ { 1 } }$ if $p _ { 1 } < p _ { 2 }$ and 0 if $p _ { 2 } < p _ { 1 }$.

Quizplus · Accepted Answer

The Answer of Suppose your tastes can be represented by the utility function $u \left( x _ { 1 } , x _ { 2 } \right) = x _ { 1 } ^ { 1 / 2 } + x _ { 2 } ^ { 1 / 2 }$ .Your demand function for $x _ { 1 }$ is a. $\frac { I } { 2 p _ { 1 } }$.
c. $\frac { I } { p _ { 1 } + p _ { 2 } }$.
b. $\frac { p _ { 2 } I } { p _ { 1 } \left( p _ { 1 } + p _ { 2 } \right) }$
d. $\frac { I } { p _ { 1 } }$ if $p _ { 1 } < p _ { 2 }$ and 0 if $p _ { 2 } < p _ { 1 }$.

Suppose Your Tastes Can Be Represented by the Utility Function u(x1,x2)=x11/2+x21/2u \left( x _ { 1 } , x _ { 2 } \right) = x _ { 1 } ^ { 1 / 2 } + x _ { 2 } ^ { 1 / 2 }u(x1​,x2​)=x11/2​+x21/2​

Suppose Your Tastes Can Be Represented by the Utility Function $u \left( x _ { 1 } , x _ { 2 } \right) = x _ { 1 } ^ { 1 / 2 } + x _ { 2 } ^ { 1 / 2 }$