Question

Suppose you consume two goods, whose prices are given by p1 and p2, and your income...

Suppose you consume two goods, whose prices are given by p1 and p2, and your income is m.

Solve for your demand functions for the two goods, if

(a) your utility function is given by U(x1, x2) = ax1 + bx2

(b) your utility function is given by U(x1, x2) = max{ax1, bx2}

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