Suppose You Solve a Consumer's Constrained 2-Good Optimization Problem for a Given

question 4

Essay

Suppose you solve a consumer's constrained 2-good optimization problem for a given economic environment --- and your answer contains a negative consumption level of good 2.Which of the following is a valid conclusion on your part:
a.
The true optimum has the consumer consume none of good 1.
b.
The true optimum has the consumer consume none of good 2.
c.
There are multiple "true" optimal consumption bundles.
d.
The consumer will sell good 2.
e.
None of the above.

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Definitions:

Anita Hill

An American lawyer and academic who gained national attention in 1991 when she accused U.S. Supreme Court nominee Clarence Thomas of sexual harassment.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature in the workplace or other professional or social situations.

Pay Gap

The disparity in earnings between different groups, often highlighted by differences in gender, race, or age.

Ceos

Chief executive officers, the highest-ranking individuals in a company or organization, responsible for making major corporate decisions.