Graph a typical indifference curve for the following utility functions, and determine whether they have convex indifference
Question:
Graph a typical indifference curve for the following utility functions, and determine whether they have convex indifference curves (i.e., whether the MRS declines as x increases).
a. U 1x, y2 5 3x 1 y.
b. U 1x, y2 5 "x # y.
c. U 1x, y2 5 "x 1 y.
d. U 1x, y2 5 "x2 2 y2
.
e. U 1x, y2 5 xy x 1 y
.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Microeconomic Theory Basic Principles And Extensions
ISBN: 9781305505797
12th Edition
Authors: Walter Nicholson, Christopher M. Snyder
Question Posted: