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Igoryamba
3 years ago
11

When prices are (p1, p2) = (1, 2), a consumer demands (x1, x2) = (1, 2). When prices are (2,1), the consumer demands (2,1). Is t

his behavior consistent with the model of maximizing behavior?
Can someone explain this further?

Thanks!!
Advanced Placement (AP)
1 answer:
BaLLatris [955]3 years ago
8 0
<span>I think this is correct: (1) When prices are (p1, p2) = (1, 2) a consumer demands (x1, x2) = (1, 2),and when prices are (q1, q2) = (2, 1) the consumer demands (y1, y2) = (2, 1). I
 
(2) When prices are (p1, p2) = (2, 1) a consumer demands (x1, x2) = (1, 2),and when prices are (q1, q2) = (1, 2) the consumer demands (y1, y2) = (2, 1). 
Sorry if it's wrong</span>
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