Tina consumes only two goods , x and y, and her utility function is u(x1,x2) = x12+x22. (1) Find the demand function that solves first order conditions with budget constraint. (2) Please show that Tina's utility function is not convex. (3) Find the utility at the corner (spending all money on either x1 or x2) and compare the utility with the solution

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
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Tina consumes only two goods , x and y, and her utility function is u(x1,x2) = x12+x22.

(1) Find the demand function that solves first order conditions with budget constraint.

(2) Please show that Tina's utility function is not convex.

(3) Find the utility at the corner (spending all money on either x1 or x2) and compare the utility with the solution of (1).

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