Question

"A consumer has the utility function:u( x1, x2)=min(x1,x2)

and the endowment e=(2; 0).

Determine the consumer’s excess demand function!

Answer 1

Total endowment$=$ $2+0=2$

Excess supply$=x1-x2=x1$

Excess demand$=2(x1)=2x$