3) Illustrate the following utility functions by sketching indifference curves in the X,Y space: (Need not be to scale as long as the general shape is reasonable) (a) U(X,Y) = 2X + 3Y (perfect substitutes) (b) U(X,Y) = X1/2Y 1/2 (Cobb-Douglas) (c) Derive the expression for the Marginal Rate of Substitution for the utility functions above.

3) Illustrate the following utility functions by sketching indifference curves in the X,Y space: (Need not be to scale as long as the general shape is reasonable) (a) U(X,Y) = 2X + 3Y (perfect substitutes) (b) U(X,Y) = X1/2Y 1/2 (Cobb-Douglas) (c) Derive the expression for the Marginal Rate of Substitution for the utility functions above.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.3P

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