Mathematics Homework Help

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In this question write down a simple, formal, mathematical model. We wish to analyze the consumer’s choice of housing. In particular, we want to compare the impact on utility of a change in the price of housing for a renter and a homeowner. You may assume that all individuals consume two things – housing (H), and a second consumption good (C).

1. (10 points) Write down the renter’s problem. Write down the homeowner’s problem.