Chapter 14.1, Problem 31E

(a)

To determine

To calculate: The number of units of X must be purchased to retain the same level of utility if the consumer purchases 9 units of Y. Suppose that the utility function for two goods X and Y is given by $U=x{y}^2$ and a consumer purchases 9 units of X and 6 units of Y.

(b)

To determine

To calculate: The number of units of Y must be purchased to retain the same level of utility if the consumer purchases 81 units of X. Suppose that the utility function for two goods X and Y is given by $U=x{y}^2$ and a consumer purchases 9 units of X and 6 units of Y.

(c)

To determine

To graph: The indifference curve for the utility level found in parts (a) and (b). Use the graph to confirm the answers to parts (a) and (b). Suppose that the utility function for two goods X and Y is given by $U=x{y}^2$ and a consumer purchases 9 units of X and 6 units of Y.