DSE Q

[kavya]

how come statement 1 is true?


how to solve the following q?

[Sinistral]

the first statement of first question has been proved by Duck. Look here

for second ques see here

[kavya]

thank u sinistral :D

[riddhima]

Hey guys anbody who have solved the 3rd question here?

My initial approach was to solve it with assuming 1000 as the total money with no condition applied
which solved for 4 books and 80 movies. Given the utility function x^1/4y^4/5, where x is book and y is movie, shows that the person prefers more of movies than books, now after buying his initial level of 4 books and 80 movies with 4 free movie tickets, the answer came out to be (4,84) for me

Could anyone explain, why he chose to spend extra on books beyond his ideal choice (that is when no condition was applied)

Thanks!