Abdul is very rational about most things and has consistent preferences over coffee, x, and a composite good, y, which we can think of as representim all other goods that Abdul consumes. Abdul's preferences over coffee and all other goods are represented by the following function: u(x, y) = 68V? + 17y. ist attempt Part 1 (2 points) 0 See Hint What will Abdul's utility be from a bundle of four cups of coffee and 12 units of the composite good? If Abdul consumes no coffee, how much of the composite good must he consume to achieve the same utility as before? Abdul is indifferent between the bundles (4,12) and (1,16). Suppose that both bundles are quadrupled (for each bundle, both goods are multiplied by four). ls Abdul indifferent between the quadrupled bundles? Choose one: 0 A. No, he has different marginal utilities for each good. 0 B. Yes, in this case he remains indifferent, but that result is not generally true. 0 C. There is not enough information to say. 0 D. Yes, if both goods are increased by the same factor, he must remain indifferent. Part 4 (2 points) 0 See Hint Recall that Abdul's preferences are represented by u(x, y) = 68V? + 17y. What is Abdul's marginal rate of substitution? A/f How does the MRS change as yincreases? Choose one: 0 A. It increases by 17. m R If rlnrrnacnc hu 'I 7 The indifference curve for any level of utility can be found by setting the utility level equal to the function. For the utility level Abdul reached in Part 1 (from the bundle (4,12)), what is the equation for Abdul's associated indifference curve as a function of y? y= - Now use this equation to graph Abdul's indifference curve. You have already found two points on the curve: (4,12) and the point where x = 0. Calculate the point where x = 16, and then use the point tool to plot that point along with the other two. Then use the curve tool to plot the indifference curve through these three points. To refer to the graphing tutorial for this question type, please click here. a - / r Q ~ Abdul's Love for Coffee All other goods 32 30 28 26 24 22 20 18