What preference does this utility function represent? (Hint: the utility function is not linea but at least linear in good x₂.) Drawinwg indifference curves: you can copy down the graph on your paper using econgrap Set the preferences and parameters accordingly as given in the question. Click on "snap to optimal bundle" to see the optimal choice. Click on "show indifference curve map." Draw th lowest four indifference curves as you see from the graph. . Find the marginal utility of x₁ and x2. What is the maximum number of x₁ so that MUX₁ is bigger than or equal to MUx₂? Given her income of $80, how many units of x₁ can she buy? Would she buy any positive number of x₂ in light of the answer from Q5.3? Find the optimal bundle. Suppose instead her income is $100. Would she buy any positive number of x₂? Find the optimal bundle using the tangency condition. Find the optimal bundle with an income of $110 using the tangency condition. What happ
What preference does this utility function represent? (Hint: the utility function is not linea but at least linear in good x₂.) Drawinwg indifference curves: you can copy down the graph on your paper using econgrap Set the preferences and parameters accordingly as given in the question. Click on "snap to optimal bundle" to see the optimal choice. Click on "show indifference curve map." Draw th lowest four indifference curves as you see from the graph. . Find the marginal utility of x₁ and x2. What is the maximum number of x₁ so that MUX₁ is bigger than or equal to MUx₂? Given her income of $80, how many units of x₁ can she buy? Would she buy any positive number of x₂ in light of the answer from Q5.3? Find the optimal bundle. Suppose instead her income is $100. Would she buy any positive number of x₂? Find the optimal bundle using the tangency condition. Find the optimal bundle with an income of $110 using the tangency condition. What happ
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section6.A: Appendix: Indifference Curves And Utility Maximization
Problem 2AQ
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