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Q2. Thirsty Ed drinks only pure spring water, but he can purchase it in two different-sized containers: 0.15 liter and 0.4 liter. Because the water itself is identical, he regards these two goods as perfect substitutes. a. Assuming Eds utility depends only on the quantity of water consumed and that the containers themselves yield no utility, express this utility func- tion in terms of quantities of 0.75-liter containers (x) and 2-liter containers (y). Graph a few indifference curves.

Q2. Thirsty Ed drinks only pure spring water, but he can purchase it in two different-sized containers: 0.15 liter and 0.4 liter. Because the water itself is identical, he regards these two goods as perfect substitutes. a. Assuming Eds utility depends only on the quantity of water consumed and that the containers themselves yield no utility, express this utility func- tion in terms of quantities of 0.75-liter containers (x) and 2-liter containers (y). Graph a few indifference curves.

Micro Economics For Today
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 5SQP
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PLS ONLY GRAPH THE INDIFFERENCE CURVES. i dont need the first part of the question

 
Q2. Thirsty Ed drinks only pure spring water, but he can purchase it in two different-sized containers: 0.15 liter and 0.4 liter. Because the water itself is identical, he regards these two goods as perfect substitutes. a. Assuming Eds utility depends only on the quantity of water consumed and that the containers themselves yield no utility, express this utility func- tion in terms of quantities of 0.75-liter containers (x) and 2-liter containers (y). Graph a few indifference curves.
Transcribed Image Text:Q2. Thirsty Ed drinks only pure spring water, but he can purchase it in two different-sized containers: 0.15 liter and 0.4 liter. Because the water itself is identical, he regards these two goods as perfect substitutes. a. Assuming Eds utility depends only on the quantity of water consumed and that the containers themselves yield no utility, express this utility func- tion in terms of quantities of 0.75-liter containers (x) and 2-liter containers (y). Graph a few indifference curves.
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