A particular consumer has Marshallian demand for two commodities given as follows
This is valid for all price and income levels that are strictly positive. This consumer assures me, by the way, that at prices (p1, p2) and income Y, his Marshallian
demand is strictly better for him than anything cl.se he can afford. Does this consumer conform to the model of the consumer used in this chapter? That is, is there
some set of preferences, given by a utility function, such that maximization of that utility subject to the budget constraint gives rise to this demand function? If
the answer to the first part of the question is yes, how much about the consumer's utility function and/or preferences can you tell me? Can you nail down -the
consumer's utility function precisely? (If you answer this yes, and if you've ever played the board game Monopoly, “go directly to jail.”) Can you nail down
precisely the consumer's preferences over consumption bundles? If not, how much can you say about the consumer's preferences?