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
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
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.8P
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