1)

a) what are the Indifference Curve look like if both products are neutral?

b)Find MRS if you can.

2)

a)Find 5 bundles (x,y) or consumption space . (In a graph)

X>0

ly>0

b)Find the utility levels assigned by (u(x,y) and v(x,y) of these 5 bundles.

Rank those bundles based on these utility levels and compare the ranking given by the 2 utility functions.

U(X,y)=2x +y - utility function 1

V(x,y)=f(u(x,y))-utility function 2

=3u(x,y)

=3(2x+y)

= 6x +3y