Harvey Habit in Problem 9 has a utility function U(c₁, c₂) = min{c₁, c₂}. If he had an income of $420 in period 1 and $1,050 in period 2 and if the interest rate were 10%, how much would Harvey choose to spend on bread in period 1? A) $240 B) $360 C) $1,440 D) $1,080 E) $720

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The Answer of Harvey Habit in Problem 9 has a utility function U(c₁, c₂) = min{c₁, c₂}. If he had an income of $420 in period 1 and $1,050 in period 2 and if the interest rate were 10%, how much would Harvey choose to spend on bread in period 1? A) $240 B) $360 C) $1,440 D) $1,080 E) $720

Harvey Habit in Problem 9 Has a Utility Function U(c1

Harvey Habit in Problem 9 Has a Utility Function U(c₁