[Indifference Curves] Consider the utility function U(C1, C2) and B 1 In(C1)BIn(C2) 1. Using a program of your choice (say excel or matlab) plot indifference curves in the space (C1, C2) for U =-0.5, -1, and -1.5. Consider values of Cin the interval [0.1, 1]. Set the range of the vertical axis to [0, 2]. 2. Find an analytical expression for the slope of the indifference curve 3. Find the slope of indifference curve when C1 is 0.2 and 0.8. Which one is steeper? Explain

Question
[Indifference Curves] Consider the utility function U(C1, C2)
and B 1
In(C1)BIn(C2)
1. Using a program of your choice (say excel or matlab) plot indifference curves
in the space (C1, C2) for U =-0.5, -1, and -1.5. Consider values of Cin the
interval [0.1, 1]. Set the range of the vertical axis to [0, 2].
2. Find an analytical expression for the slope of the indifference curve
3. Find the slope of indifference curve when C1 is 0.2 and 0.8. Which one is
steeper? Explain
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Transcribed Image Text

[Indifference Curves] Consider the utility function U(C1, C2) and B 1 In(C1)BIn(C2) 1. Using a program of your choice (say excel or matlab) plot indifference curves in the space (C1, C2) for U =-0.5, -1, and -1.5. Consider values of Cin the interval [0.1, 1]. Set the range of the vertical axis to [0, 2]. 2. Find an analytical expression for the slope of the indifference curve 3. Find the slope of indifference curve when C1 is 0.2 and 0.8. Which one is steeper? Explain

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