Short Answer Questions 1. True or false. Explain your answer.

1. If Maria's preferences for shoes are represented by the utility function

u(s) = s 3 e s where s is the number of pairs of shoes, then Maria's preferences for shoes can also be represented by the utility function u(s) = 3 ln s + s 100.

2. Greta likes to play tennis with Ramesh and Zofia. We can represent her preferences with the utility function U(R,Z) = 4R + 2Z, where R and Z are minutes of playing tennis per month with Ramesh and Zofia respectively. What is the formula for her indifference curve to get U units of utility (that is, at utility of U, write the formula for an indifference curve with Z on the vertical axis and R on the horizontal axis)? What is her marginal rate of substitution of minutes playing tennis with Ramesh for minutes playing tennis with Zofia?