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S: F E500, 8:00December 18, 2008Question 1 Utility is quasilinear, i.e., u(x) v(x1 ) + x2 . Thus, v (x1 ) p1 . Thus, 20 4p1 x1 implies p1 5 (1/4)x1 . Hence, v (x1 ) 5 (1/4)x1 , and therefore v(x1
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