Question

When prices are (p1, p2) = (1, 2), a consumer demands (x1, x2) = (1, 2). When prices are (2,1), the consumer demands (2,1). Is this behavior consistent with the model of maximizing behavior?

Can someone explain this further?

Thanks!!

Answer 1

I think this is correct: (1) When prices are (p1, p2) = (1, 2) a consumer demands (x1, x2) = (1, 2),and when prices are (q1, q2) = (2, 1) the consumer demands (y1, y2) = (2, 1). I

(2) When prices are (p1, p2) = (2, 1) a consumer demands (x1, x2) = (1, 2),and when prices are (q1, q2) = (1, 2) the consumer demands (y1, y2) = (2, 1).
Sorry if it's wrong