Re: Demand function doubt

Posted by Dreyfus on May 03, 2014; 3:22pm
URL: http://discussion-forum.276.s1.nabble.com/Demand-function-doubt-tp7588391p7588396.html

This utility func represents concave preference....when p1>p2 then consumer will exhaust all his income on x2 so demand func will be x1=0 x2=m/p2
similarly when p2>p1 then x1=m/p1 nd x2=0
Nd when prices are equal! Either x1=0 x2=m/p2 or x1=m/p1 x2=0