Question
(ch4) Assume Joe's utility function for movies at the theater ( T ) and DVDs at home ( D ) is given by U=4T^2+D^2 (MUsubT
(ch4) Assume Joe's utility function for movies at the theater (T ) and DVDs at home (D ) is given by
U=4T^2+D^2 (MUsubT =8T; MUsubD = 2D)
a. Would bundles of (T = 2 and D = 2) and (T = 1 and D = 4) be on the same indifference curves? Explain.
b. Are Joe's indifference curves convex? Explain.
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Economics
Authors: Roger A. Arnold
11th edition
1133561675, 978-1133561675
