if U(x1,x2)= (x1-9)^2+(x2-4)^2 what is the demand function of x1 (be aware, this is a circle)

Question

Question

business economics

Answer 1

Answer #1

Solution-

Marshallian demand function expresses the demand function of any good in terms of prices and income level.

Suppose p1 be the price of good x1 and p2 be the price of good x2.

Optimal condition will be where MUx1/ MUx2=p1/p2

Answer 2

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