Dse doubt

[Halflife]

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[Abhitesh]

Utility maximization condition will be W=E.
Initial BL : W+E=10 ; both prices are 1. => W=E = 5 = 15/3
Updated BL : W+E=10; E<4
                      W+2(E-4)=6 ; E>=4.
We have to find intersection of W=E and BL. So we get W=E=14/3
Utility = min{W,E}
=> Change in utility will be 5-14/3=1/3 (c).

[Halflife]

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[Asd1995]

Graphed BL and IC's, got optimal bundle (14/3,14/3). You may want to check sustainability of the answer youre getting, should obey 2E+W=14

[Halflife]

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