(Step-by-Step) Suppose m=10, p_1=1, p_2=1 and preferences are given by U(x_1, x_2)= [5-|5-x_1|-|5-x_2|]^2 Which the bundles are in the budget set but not on


Question: Suppose \(m=10, p_{1}=1, p_{2}=1\) and preferences are given by \(U\left(x_{1}, x_{2}\right)=\) \(\left[5-\left|5-x_{1}\right|-\left|5-x_{2}\right|\right]^{2}\)

  1. Which the bundles are in the budget set but not on the budget line? can any of these bundles solve the consumer's choice problem? explain.
  2. Find the optimal bundle \(\left(x_{1}^{*}, x_{2}^{*}\right)\)

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