Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Make 5 graphs. On each graph, draw the following budget constraints. Label the axes, intercepts, and slope. (a) 23:1 + 43:2 = 12 (b)

image text in transcribedimage text in transcribed
2. Make 5 graphs. On each graph, draw the following budget constraints. Label the axes, intercepts, and slope. (a) 23:1 + 43:2 = 12 (b) 4161 + 4332 = 16 3. For each of the following utility functions, calculate the MRS. Solve for the optimal choice for each budget constraint in question 2. Add an indifference curve for each optimal choice to your graphs in question 2 (2 indifference curves and 1 utility function for each graph). Label your indifference curves, the optimal choices, and the MRS (if it is dened). (a) M131, 232) = (1:1 + 21132 (b) u(21, 2) = min {2x1, 2x2} (c u(x1, 202) = 122 (d) u(x1, 202) = 1+4x2 (e) u(x1, 2) = 4in(21) + 4x2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economy Of Cities

Authors: Jane Jacobs

1st Edition

039470584X, 9780394705842

More Books

Students also viewed these Economics questions