Question

U(x)=Max(x1,2x2)

Derive demand function and draw out demand curve.

Draw out engel curve.

Answer 1

So the utility function that is given here is about max function.

So, there can be three scenarios like:-

P1>P2, that means X2 is cheaper thatn X1 so the consumer is buying all of X2. So the cordinate point on graph will be lying on the y axis.

P1<P2,  that means X1 is cheaper thatn X2 so the consumer is buying all of X1. So the cordinate point on graph will be lying on the x axis.

P1=P2, both the goods are of same price so the consumer is indifferent at buying so he will buy both product of equal quantity.

the graph is given below.