A B C 4.3 (0) Burt's utility function is U (x₁, x₂) = (x1 + 2)(x2 + 6), where x₁is the number of cookies and 2 is the number of glasses of milk that heconsumes.consuming the bundle (4, 6)?__(a) What is the slope of Burt's indifference curve at the point where he isUse pencil or black ink to drawa line with this slope through the point (4,6). (Try to make this graphfairly neat and precise, since details will matter.) The line you just drewis the tangent line to the consumer's indifference curve at the point (4, 6).(b) The indifference curve through the point (4,6) passes through thepoints,0), (7, - ), and (2,). Use blue ink tosketch in this indifference curve. Incidentally, the equation for Burt'sindifference curve through the point (4,6) is 2 ==Glasses of milk16wise decision?on your graph.1240 4 812 16Cookies(c) Burt currently has the bundle (4,6). Ernie offers to give Burt 9glasses of milk if Burt will give Ernie 3 cookies. If Burt makes this trade,Burt refuses to trade. Was this ahe would have the bundleMark the bundle (1,15)

Answered: Image /qna-images/answer/ea5c32f8-e1f2-4589-8beb-25a534cb85e2.jpg

Answered: 4.3 (0) Burt's utility function is U…

4.3 (0) Burt's utility function is U (x₁, x₂) = (x1 + 2)(x2 + 6), where x₁ is the number of cookies and 2 is the number of glasses of milk that he consumes.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 3SQP

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

A B C

4.3 (0) Burt's utility function is U (x₁, x₂) = (x1 + 2)(x2 + 6), where x₁
is the number of cookies and 2 is the number of glasses of milk that he
consumes.
consuming the bundle (4, 6)?__
(a) What is the slope of Burt's indifference curve at the point where he is
Use pencil or black ink to draw
a line with this slope through the point (4,6). (Try to make this graph
fairly neat and precise, since details will matter.) The line you just drew
is the tangent line to the consumer's indifference curve at the point (4, 6).
(b) The indifference curve through the point (4,6) passes through the
points
,0), (7, - ), and (2,
). Use blue ink to
sketch in this indifference curve. Incidentally, the equation for Burt's
indifference curve through the point (4,6) is 2 =
=
Glasses of milk
16
wise decision?
on your graph.
12
4
0 4 8
12 16
Cookies
(c) Burt currently has the bundle (4,6). Ernie offers to give Burt 9
glasses of milk if Burt will give Ernie 3 cookies. If Burt makes this trade,
Burt refuses to trade. Was this a
he would have the bundle
Mark the bundle (1,15)

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