[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
Expand
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

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Economics

Related Economics Q&A

Find answers to questions asked by students like you.

Q: If the total cost of producing 11 units of output in this figure is $16, the firm's economic profit ...

A:  Given : TC = $16, Q= 11 units, P=$8Therefore, TR= P*Q = 8*11 = $88Profit = TR-TC=88-16=$72

Q: I feel like supply and demand should be easy to understand but i'm confused. My teacher says that th...

A: To show the relationship between supply and demand.

Q: Question 33 Consider a firm with production function f(L,K)=3L+8K. Assume that capital is fixed at K...

A: Given,Production function f(L,K)=3L+8KWhere, K is the units of capital and L is the units of laborCa...

Q: Tracy consumes dress shoes (D) and casual Crocs (C). Her marginal utility from consuming casual Croc...

A: The budget line is the locus point of all the different combinations of two goods that the consumer ...

Q: Economics Question

A: The initial equilibrium is at E with a nominal interest rate of 8%. A fall in expected future inflat...

Q: Question 11 Consider a call center with production function f(L,K)=30L+300K, where L is units of lab...

A: Given,Production function f (L, K) = 30L+300KWhere, L is the units of labor and K is the units of ca...

Q: GeeM has a sporty wheel package and a luxury interior package that it is considering offering to its...

A: Given:  GeeM costs 5 to produce a sporty wheel package and 10 to produce a luxury interior package. ...

Q: Question 28 Consider a firm with production function f(L,K)=3L1/3K2/3. Assume that capital is fixed ...

A: The average fixed cost (AFC) is determined by taking the ratio of total fixed cost with the total ou...

Q: 1.Using a relevant diagram, illustrate and discuss the Ricardo-Barro Effect 2. Using relevant diagra...

A: Ricardo-Barro Effect or Ricardian equivalence is an economic theory stating that a change in tax rat...

Q: Using the aggregate demand and aggregate supply model, explain the effects of the following on price...

A: Each of the given figure (1, 2, and 3), point ‘A’ shows the initial equilibrium where the aggregate ...

Q: Savings, Investment, and the Financial System - End of Chapter Problems 1. Given the following infor...

A: Given – GDP = $1400M , T = $310M , C = $840M , G= $280M (M=million)For closed economy:GDP = C + I + ...

Q: Savings, Investment Spending, and the Financial System- End of Chapter Problems 16. Sallie Mae is a ...

A: a) Sallie Mae has engaged in securitization which is her packaging process. Because the likelihood t...

Q: a) What are the determinants of production? Explain.b) Suppose that an economy’s production function...

A: The production function is a function that shows the relationship between output produced in an econ...

Q: problem 1. Think about the market for parking spaces in downtown LA. There is little flexibility in ...

A: In the above graph, if the total parking is at the D1 intersecting at S, but if there are substitute...

Q: Why the aggregate demand curve slopes downward The following graph shows the aggregate demand (A...

A: In the given graph in the question, at point A, the price level is 140, and the quantity of output d...

Q: The country of Opalia produces two goods: footballs and basketballs. Below is a table showing prices...

A: We are authorized to answer three subparts at a time, since you have not mentioned which part you ar...

Q: Instructor-created question Jane receives utility from days spent traveling on vacation domestically...

A: a. If the consumer spends the entire budget ($4000) for a domestic travel, the number of affordable ...

Q: Question 26 Consider the firm whose MC, AC, AVC, AFC functions are shown in the following graph. (Th...

A: The Marginal cost, Average cost, Average Variable cost and Average fixed cost curves of the firm are...

Q: Question 15 Consider the following figure (The following is a description of the figure: it shows a ...

A: The process of production is the combining of the raw materials and the skills and knowledge of the ...

Q: Can you help me with 4 and 5

A: At socially optimal level, output is produced at a point where price equals marginal cost. 

Q: elaborate 2 main components of money based on the narrowest definition of money

A: Narrowest definition money or M1 refers to the sum of currency held with the public, demand deposits...

Q: Funsters, Inc., the largest toy company in the country, sells its most popular doll for $15. It has ...

A: The market is headed by the largest manufacturer of the toys and the largest one at present is the F...

Q: 1. Consider the market for used textbooks. Use  Exhibit A-5 to calculate the total producer surplus....

A: Since we answer only one question at a time, we will answer the first question. Kindly upload the ot...

Q: What happens to aggregate demand when transfer payments and the taxes to pay them both rise by the s...

A: Click to see the answer

Q: Using the aggregate demand and aggregate supply model, explain the effects of the following on price...

A: The decision to revamp the public transportation will increase government spending and raise the agg...

Q: Distinguish the true statements from the false statements True False Answer Bank Externalities are t...

A: Market:Market refers to the place where buyer and sellers of the goods and services comes in close c...

Q: What is a perceptual map?

A: There are many goods and services available in the market and the likelihood of the consumer towards...

Q: What are some of the major trading regions?

A: To identify some of the major trading regions.

Q: Which of the following statements best describes how individuals maximize their utility given a cons...

A: Individuals maximize their utility when the budget constraint is tangent to the indifference curve, ...

Q: True False Answer Bank The term "cap and trade" describes regulation by marketable permits Compared ...

A: Click to see the answer

Q: If business cycles were really inevitable, what purpose would macro policy serve?

A: Business Cycle: It is the continuous cycle of production of goods and services which contracts and e...

Q: Draw a labor market for un-skilled labor assuming demand is perfectly inelastic. 8b. Insert a minimu...

A: Perfectly inelastic for the unskilled labor demand  would be estimated to be vertical.  It is define...

Q: Suppose the California legislature passed a sweeping law to lower the number of regulations for buil...

A: Click to see the answer

Q: A company has an investment project that would cost $10 million today and yield a payoff of $15 mill...

A: The breakeven interest rate is the maximum rate of interest a firm can make the payments from the av...

Q: Refer to Figure 2. It shows the imposition of a per-unit tax on the market for cigarettes. S = Marke...

A: New supply curve with tax increases the equilibrium price to PTAX. The new price consumer pays - PTA...

Q: Question are pinned below

A: “Hello, thank you for the question. Since there are multiple questions posted, we will answer the fi...

Q: hey i need help with my homework

A: When there is an increase in demand in a competitive firm, the new equilibrium point shifts to B and...

Q: A survey shows an increase in drug use by young people. In the ensuing debate, two hypotheses are pr...

A: The correct answer to the above-mentioned question is that the difference between the two explanatio...

Q: Brief explanation on keynesian model and its diagram

A: Aggregate Demand: It refers to the total demand for goods and services in the economy within a given...

Q: Consider an economy in which the demand for money is of the formMt =1/(bar over v)PtYfor t = 0, 1, 2...

A: Given: Mt= (1/v) PtYY= 150, v= 1.5, Money supply = 100 for t=0,1

Q: If banks expect that the rate of inflation in the coming year will be 4.95% and they want a real ret...

A: The real interest rate is the adjusted interest rate that doesn’t include the effect of inflation ra...

Q: monopolist's decision about how many unit to sell is realted to micro or macroeconomics

A: Microeconomics generally studies the behaviour of firms and individuals in decision making with rega...

Q: Many of the survey questions focus on the used to pay for college, so the undergraduates in the sur ...

A: (6.6)The average annual amount a family pays for a college is calculated as follows.

Q: Help Sav 0 Homework Saved The investment demand curve for a country is shown on the graph below. Sup...

A: The investment demand curve reflects a negative relationship between investment demand and interest ...

Q: The optimal level of production for any company is the level of production that either maximizes pro...

A: Hey, Thank you for the question. According to our policy we can only answer 1 question per session. ...

Q: The second half of the question

A: The marginal rate of substitution (MRS) is the rate at which consumers can give up quantity of good ...

Q: Table of Contents Section 5- International Trade Dropbox Question 7 Dropbox Question 7 Dropbox Quest...

A: We answer only one question at a time. So, we are answering the first question asked by you. If you ...

Q: plans are underway for a new stadium for a baseball team. City officials question the number and pro...

A: Given fixed cost = $4,500,000 , Variable cost = $ 150,000Customer may Purchase at $300,000

Q: When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy? plea...

A: The government can stabilize the economy with the help of Monetary and Fiscal Policy.Fiscal Policy: ...

Q: Which delivery system would you choose for each of the following 5 scenarios (AND WHY), if the item ...

A: Projects are temporary in nature. They are not an everyday business process and have definitive star...