If the utlity function U(x1,x2) = x1x2 and has a budget line p1x1 = p2x2 = mm then the demand function for x1 is ??
the answer is x1 = m / 2p1
I was wondering how you get that?
Also this question if U(x1,x2) = min(x1,5x2) and p1 = 1, p2 = 2 and m = 140, then the demands for x1...