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Please help me with q32 and q33 of DSE 2013
According to answer key r=1/ß-1, but acc to budget consraint x2= 1-(0.5*(1+r)) which turns out to x2=1-(1/2ß) , here x2 is negative for ß>1/2 as it is given that 0<ß<1
Then why are we not taking this into consideration that x2 cannot be negative?
And for ques 33 I need ur help....is x1= N*(m/px1)*prob(ß<(1/1+r)) { Is my approach is correct}
Thanks
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