3. For the following utility functions: 1. U(X, Y)= XY² 2. 3. U(X, Y)= X² + Y² U(X, Y)= XY + 10Y a. Write the general equation of the MRS for each utility function. b. Write the equation for the indifference curve where utility is equal to 100 for each utility function. c. Determine whether these indifference curves for each of the utility functions are convex (that is, whether the MRS decreases as x increases) or are concave (and thus violate an assumption about preferences).

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.1P
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For the following utility functions:
1. U(X, Y) = XY?
2. U(X, Y) =XY+ 10Y
3. U(X, Y) = X² + Y si
a. Write the general equation of the MRS for each utility function.
b. Write the equation for the indifference curve where utility is equal to 100 for each utility
function.
c. Determine whether these indifference curves for each of the utility functions are convex
(that is, whether the MRS decreases as x increases) or are concave (and thus violate an
assumption about preferences).
3.
Transcribed Image Text:For the following utility functions: 1. U(X, Y) = XY? 2. U(X, Y) =XY+ 10Y 3. U(X, Y) = X² + Y si a. Write the general equation of the MRS for each utility function. b. Write the equation for the indifference curve where utility is equal to 100 for each utility function. c. Determine whether these indifference curves for each of the utility functions are convex (that is, whether the MRS decreases as x increases) or are concave (and thus violate an assumption about preferences). 3.
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