Which of the following are conditions of consumer’s equilibrium in a two commodity case where U = utility and P1 and P2 are prices of two goods ?
A. dU/dX = 0
B. dU1/dU2 = 0
C. d2U/dX2 < 0
D. None of the above
Answer:D
Which of the following are conditions of consumer’s equilibrium in a two commodity case where U = utility and P1 and P2 are prices of two goods ?
A. dU/dX = 0 B. dU1/dU2 = 0 C. d2U/dX2 < 0 D. None of the above