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A Consumer Has a Budget Constraint Given By p0x1^+p1x1+p2x2yp_{0} \widehat{x_{1}}+p_{1} x_{1}+p_{2} x_{2} \leq y

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A consumer has a budget constraint given by p0x1^+p1x1+p2x2yp_{0} \widehat{x_{1}}+p_{1} x_{1}+p_{2} x_{2} \leq y where p0>0p_{0}>0 and x1^=1\widehat{x_{1}}=1 if positive amounts of x1x_{1} are purchased and 0 otherwise. If the consumer has a utility function given by U(x1,x2)=x1+x2U\left(x_{1}, x_{2}\right)=x_{1}+x_{2} and p1=p2p_{1}=p_{2} then he will not purchase x1x_{1} .

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