HomeworkLib
Question

4. Graph a typical indifference curve for the following utility functions and determine whether they have convex indfference

business   economics   
2 2
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

a.

Good Y -10 U=3x+y NON CONVEX IC | 10 10 20 30 Good X

b.

U=(x^2+y^2)^(1/2) Good Y NON CONVEX LC Good X

c.Good Y U=(x^2-y^2)+(1/2) NON CONVEX IC 20 Good X

d.

Good Y U=x^2/3 y^1/3 --1-5 CONVEX IC -0.5 20 Good X

e.

Good Y 1:50 -1001 U= log x+ logy or U=XY (CONVEX IC) 50 100 150 Good X

3 0
Add a comment
Know the answer?
Add Answer to:
4. Graph a typical indifference curve for the following utility functions and determine whether they have...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Graph an indifference curve (IC) for the following utility functions and determine whether they obey the...

    Graph an indifference curve (IC) for the following utility functions and determine whether they obey the assumption of diminishing MRS. U(x, y) = In x + In y

  • For each of the following utility functions, draw an indifference map with 3 in curves. Be...

    For each of the following utility functions, draw an indifference map with 3 in curves. Be sure to label your axes, and label your curves as IC1, IC2, and ICs, where difference 1 U2 U (X,Y)=3X+5Y U3. (5 points each) a. U(X, Y) U(X, Y) -X2 + ln(Y) min(3X,5Y) c. d.

  • For each of the following utility functions: Calculate MUx, MUy, MRSx,y; determine whether or not the...

    For each of the following utility functions: Calculate MUx, MUy, MRSx,y; determine whether or not the property of “more is better” is satisfied for both goods; determine whether or not the marginal utility of x diminishes, remains constant, or increases as the consumer buys more x; determine whether or not the marginal rate of substitution diminishes, remains constant, or increases as the consumer substitutes x for y along an indifference curve; and sketch the graph of a typical indifference curve....

  • Consider the following 3 utility functions with good x and good y: ? ?(?, ?) =...

    Consider the following 3 utility functions with good x and good y: ? ?(?, ?) = (?^2)*sqrt(?), ? ?(?, ?) = 2? − (1/2)?, ? ? (?, ?) = 4 ln ? + ln ? a. Find Marginal Utility (MUx and MUy) for each these utility functions. b. Is assumption that more is better satisfied for both goods in all of these utility functions? If not, specify for which function(s) and for which good(s) it is not satisfied. c. Does...

  • 4. [25 POINTS]Use separate graphs to draw indifference curves for each of the following utility functions: (a) 6 POINTS...

    4. [25 POINTS]Use separate graphs to draw indifference curves for each of the following utility functions: (a) 6 POINTS] U (x, y) = min{2x + y, 2y + x}. (b) [6 PoINts] U (x,y) = max{2.x + y, 2y + x}. (c) 6 POINTS] U (x,y) = x + min {x, y}. (d) 7 POINTS] In which of these cases are preferences convex? 4. [25 POINTS]Use separate graphs to draw indifference curves for each of the following utility functions: (a)...

  • Natalia and her sister, Gina, have the following utility functions on the number of slices of...

    Natalia and her sister, Gina, have the following utility functions on the number of slices of pizza (x) and cans of soda (y) they consume in the semester. Natalia’s is U(x,y)=3x+2y and Gina’s is V(x,y)=4x+2y. If we plot their indifference curves with x measured in the horizontal axis and y measured in the vertical axis, we find that: a. Natalia’s indifference curves are L shaped and Gina’s are lines. b. Natalia’s indifference curves are steeper than Gina’s. c. Natalia’s indifference...

  • Question 1 For the following utility functions (3 pts each for a, b, and c): •...

    Question 1 For the following utility functions (3 pts each for a, b, and c): • Find the marginal utility of each good at the point (5, 5) and at the point (5, 15) • Determine whether the marginal utility decreases as consumption of each good increases (i.e., does the utility function exhibit diminishing marginal utility in each good?) • Find the marginal rate of substitution at the point (5, 5) and at the point (5, 15) • Discuss how...

  • 1. Two consumers, Amr and Chris, have utility functions that depend on their consumption of 2...

    1. Two consumers, Amr and Chris, have utility functions that depend on their consumption of 2 goods: Books on Monetary Economics (M), and Books on Economic Development (D): Amr's Utility M5D5 and Chris's Utility M2D c. Graph Amr's indifference curves for = 8 and U-18 with D on the horizontal axis. d. Graph Chris's indifference curves for U 8 and U -18 with D on the horizontal axis. e. Find a place where Amr's and Chris's indifference curves intersect, which...

  • Question 16 1 pts A typical indifference curve is negatively sloped because: as we consume more...

    Question 16 1 pts A typical indifference curve is negatively sloped because: as we consume more of one good, we are willing to give up the consumption of another good without changing our utility higher indifference curves represent higher levels of utility higher indifference curves represent lower levels of utility we assume that a consumer's income is constant Question 17 1 pts A typical indifference curve: O is convex to the origin (bowed in) has a constant slope is concave...

  • please answer all questions 2. Draw the graph of an indifference curve map for the utility...

    please answer all questions 2. Draw the graph of an indifference curve map for the utility function U(X,Y)= XY. Put good X on X-axis and good Y on Y-axis. Draw at least 3 indifference curves and label the utility level for each indifference curve. Explain why or why not do the indifference curves cross each other on the map.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT