I've got the following utility function:
is the price of good 1
is the price of good 2
is the quantity of good 1
is the quantity of good 2
The budget costraint is:
Now, we know that we have equilibrium when we have
because weighted marginal utilities are equal.
Ok, now this is where i get stuck! The book "says" that
My question is: why are equal to and equal to equal to ?Quote:
with our data, we have:
Thank you in advance!