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Hi, I was struggling with this question and any help would be great. Thanks! 1/6 1/3 2 _ Ann 's preferences are given by the

Hi, I was struggling with this question and any help would be great. Thanks!

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1/6 1/3 2 _ Ann 's preferences are given by the utility unction U (x, y) x y (Hint- to make things easier: recall that some transfonnations of a utility ftnction can leave preferences unchanged. Do it. Simplify the utility ftnction) 2a_ Derive, and illustrate in a graph: all of the combinations of x and y where Ann is willing to trade x and y at the rate of one unit of x for two units of y (for small trades). 2b. Derive, and illustrate on the same graph, all of the combinations of x and y where Ann is willing to trade x and y at the rate of one unit of y (note: it is for one unit not x) for four units of x (for small trades). 2c) Add at least two indifference curves to your diagram and illustrate the two rates of trade. 2d) What name characterizes Ann 's utility function?

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