Question
U= x(sub1)^2 +x(sub)2 a) (5 points) How do we call this type of utility function? b) (5 points) Draw the indifference curves for this utility
U= x(sub1)^2 +x(sub)2
a) (5 points) How do we call this type of utility function?
b) (5 points) Draw the indifference curves for this utility function.
c) (20 points) Suppose p1=2 and p2=1. Income is equal to 10. What will be the optimal
bundle the consumer will pick in this case? Hint: consider both the interior and corner
solutions.
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
