Show that utility level is lower that freely allocate income
Mr. Wright, a clothing salesman, is forced by is employer to spend at least $100 of his weekly income of $500 on clothing. Show that his utility level is lower that if he could freely allocate his income between clothing and other goods.
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Weekly income of $500 on clothing. Show that his utility level is lower that if he could freely allocate his income between clothing and other goods.
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