Re: GE doubt

Posted by happy on Jun 15, 2017; 3:25am
URL: http://discussion-forum.276.s1.nabble.com/GE-doubt-tp7605611p7605630.html

max min(x , y)

Solution of the above problem is
x = y  if the price of both good are positive

x may or not equal to y  if the price of 1 good equal to 0, because demanding extra amount a good whose price equal to 0, does not change the optimal solution of the problem just because it doesn't change budget constraint and the utility.