Question

Find the optimal bundle (x1, x2) (two numbers). Does Jeremy consume positive amounts of both goods?...

Find the optimal bundle (x1, x2) (two numbers). Does Jeremy consume positive amounts of both goods?

(e) Find the optimal bundle given p1 = 2, p2 = 4 and m = 40 assuming U(x1, x2) = 2x1 + 3x2. Does Jeremy consume positive amounts of both goods? Is the optimal bundle at a point of tangency?

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