Q2. Mary makes cheese sandwiches for herself every week, and she has her own receipt with two pieces of bread and one piece of cheese for each sandwich. Every sandwich will bring her 1 unit of happiness, which is represented by a utility function U. a) Please write down Mary's utility function in terms of the number of bread （B) and cheese (C), and graph the indifference curves at U=1, U=2, and U=3. b) Suppose Mary earns $40 per week; the price of bread is $10 and the price of cheese is $20, when Mary's income double and triple please graph Mary's income expansion curve, in the graph of a) and interpret it c) Please derive the Mary's Engle curves and interpret them.
Q2. Mary makes cheese sandwiches for herself every week, and she has her own receipt with two pieces of bread and one piece of cheese for each sandwich. Every sandwich will bring her 1 unit of happiness, which is represented by a utility function U. a) Please write down Mary's utility function in terms of the number of bread （B) and cheese (C), and graph the indifference curves at U=1, U=2, and U=3. b) Suppose Mary earns $40 per week; the price of bread is $10 and the price of cheese is $20, when Mary's income double and triple please graph Mary's income expansion curve, in the graph of a) and interpret it c) Please derive the Mary's Engle curves and interpret them.
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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Q2. Mary makes cheese sandwiches for herself every week, and she has her own receipt with two pieces of bread and one piece of cheese for each sandwich. Every sandwich will bring her 1 unit of happiness, which is represented by a utility function U.
a) Please write down Mary's utility function in terms of the number of bread （B) and cheese (C), and graph the indifference curves at U=1, U=2, and U=3.
b) Suppose Mary earns $40 per week; the price of bread is $10 and the price of cheese is $20, when Mary's income double and triple please graph Mary's income expansion curve, in the graph of a) and interpret it
c) Please derive the Mary's Engle curves and interpret them.
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