The company selling the good starts an advertiseme


Consider a consumer who has an experienced utility function given by . Let denote the market price of good , and assume that it remains fixed throughout the problem. 

The company selling the good starts an advertisement campagin that has the following effect on the consumer: he makes decisions as if maximizing a decision utility function given by .

Write down the expression for the difference between the consumer demand and his optimal level of consumption.

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Macroeconomics: The company selling the good starts an advertiseme
Reference No:- TGS090125

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