Consider a consumer whose utility function is: U(x1, x2) = log(x₁) + log(x₂)
Suppose that p2 = 1, m = 1, and p₁ is unknown.
There is rationing such that X₁ ≤ 0.5 **
Part a. Find the minimal p₁, denoted by p₁, such that the if P1 > P₁, then the consumer consumes x₁ strictly less than 0.5.
Part b. Now suppose p2 increases. mathematically show that whether the threshold on you found in Part a increases/decreases/stays the same.
