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In the utility function U= 2X + Y, Will the indifference curve be straight, concave, or convex [Hint: is there diminishing marginal utility in X
In the utility function U= 2X + Y,
Will the indifference curve be straight, concave, or convex [Hint: is there diminishing marginal utility in X or Y?]
Presume this person makes $20, & the price of X is $1 and the price of Y is $1.
How much X is purchased, if any? How much Y is purchased, if any? [Hint: recall that we are maximizing utility and plug in values from the budget constraint]
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