Question
Suppose a consumer has preferences represented by the utility function U(X,Y) = X 2 Y. Therefore, MU X = 2XY and MU Y = X
Suppose a consumer has preferences represented by the utility function U(X,Y) = X2Y. Therefore, MUX = 2XY and MUY= X2. Suppose PY = 1, and the consumer has $240 to spend. Draw the Price-Consumption Curve for this consumer for the prices of PX = 1, PX = 2, and PX = 5. Your graph should accurately draw the budget constraints for each of the prices for good X and specifically label the bundles that the consumer chooses at each price. Also, for each bundle that the consumer chooses, draw the indifference curve that goes through that bundle. Make sure to label your graph carefully and accurately.
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