Answer to Question #239996 in Microeconomics for Aman

Question

Say that a person has preference that can be represented by the utility function you equal to X 1 + X 2 and they face a standard triangular budget set if it is true or false to say that there cannot be an optional choice with a strictly positive amount of both goods carefully explain your answer

Answer 1

This is true since consumers have their own preferences regarding different products. Therefore, it is automatically that one product may be positive as the other one experiences a downfall. By using economic equipments, it is possible to predict behavior of customers as customers may maximize general utility considering their budget.