This problem deals with household responses to a home weatherization program to im- prove the energy efficiency of homes. A representative household consumes heating ser-
This problem deals with household responses to a home weatherization program to im- prove the energy efficiency of homes. A representative household consumes heating ser- vices (f) and other goods (x). The household's preferences over these goods are given by the following utility function: Ulh,z) = x (h1)* 1. Draw some indifference curves for the household preferences with & on the x-axis and z on the y-axis. The eurves are oriented a bit differently than the typical, textbook indifference curves. Explain the intuition for this with respect to household demand for heating services
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