Question
The utility function of Joy is (, ) = ( + 2) (Y+ 1). a)Write the equation of the indifference curve of Joy which passes
The utility function of Joy is (, ) = ( + 2) (Y+ 1).
a)Write the equation of the indifference curve of Joy which passes through the combination (X, Y) = (2.8).Draw the indifference curve of Joy.
b)Assume that the price of both goods is 1 and the income of Joy is 11. Plan the income restriction of Joy. Can Joy enjoy the combination (2.8)?
c) Equate the marginal substitution ratio with the slope of the income constraint (with the price ratio). Solving the equation what combination of goods do you have?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
