2. Suppose John's utility function is UX,Y) = 4/XY , where X is consumption of beer and Y is consumption of pizza. For this utility function, ( Calculus Kahuna say: MUx = 2/Y/X and MUy = 2/X/Y) a) Find three different bundles: (X,Y) = (2, 4½), (2, 3), (4, 24) and find the utility they provide John. Plot the three bundles and connect them with an indifference curve. LJ. %3D LJ-J %3D

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.8P
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2. Suppose John's utility function is UX,Y) = 4/XY , where X is consumption of beer and
Y is consumption of pizza. For this utility function,
( Calculus Kahuna say: MUx = 2\Y/X and MUy = 2\X/Y )
a) Find three different bundles: (X,Y) = (2, 4½), (2, 3), (4, 24) and find the utility
they provide John. Plot the three bundles and connect them with an indifference
curve.
J-L.
IIII
-+-+-
- -4-L
7-T-T-r
הרד - דר
-LJ-J-L-
1-L
-LJ-J-I
---
Transcribed Image Text:2. Suppose John's utility function is UX,Y) = 4/XY , where X is consumption of beer and Y is consumption of pizza. For this utility function, ( Calculus Kahuna say: MUx = 2\Y/X and MUy = 2\X/Y ) a) Find three different bundles: (X,Y) = (2, 4½), (2, 3), (4, 24) and find the utility they provide John. Plot the three bundles and connect them with an indifference curve. J-L. IIII -+-+- - -4-L 7-T-T-r הרד - דר -LJ-J-L- 1-L -LJ-J-I ---
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