3) Derive Manuel's optimal bundle X₁*, X2* as a function of his income (mm) and p₁ (show your work). 4) Suppose the market has a total of 20 consumers. Ten consumers are identical to Karol, and ten are identical to Manuel. Find the market demand curve for kombucha as a function of mk, mm, and p1. If mk = mM = 100, and p₁=2, what is the total amount of kombucha that the consumers demand?
3) Derive Manuel's optimal bundle X₁*, X2* as a function of his income (mm) and p₁ (show your work). 4) Suppose the market has a total of 20 consumers. Ten consumers are identical to Karol, and ten are identical to Manuel. Find the market demand curve for kombucha as a function of mk, mm, and p1. If mk = mM = 100, and p₁=2, what is the total amount of kombucha that the consumers demand?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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