Varian Doubt

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Varian Doubt

Ashima
p1 = p2, m = 15p1. How much of
good 1 could you a ord if you spend your entire budget on good 1?

x1p1+x2p2= 15p1

p1(x1+x2)= 15p1

x1+x2= 15

so if consumer is spending all income on x1, then x1=15.

Am I correct?
eco
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Re: Varian Doubt

eco
yes it look like correct

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Re: Varian Doubt

Arushi :))
Yes , correct for sureeeeeeee :)
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Re: Varian Doubt

aman
In reply to this post by Ashima
Yeah , it's correct. because, from x1p1 + x2p2 = 15 p1. thus, when x2=0, x1p1=15p1, giving x1 = 15..