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:
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a. Natalia’s indifference curves are L shaped and Gina’s are lines. |
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b. Natalia’s indifference curves are steeper than Gina’s. |
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c. Natalia’s indifference curve through (3,2) crosses Gina’s indifference curve through (0,0) |
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d. Gina’s indifference curves are steeper than Natalia’s. |
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e. The indifference curves of both sisters are parallel. |
Gina's indifference curves are steeper than Natalia's
the above is answer..
because Gina is showing more indifference between x and y
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. Then, among the bundles that are indifferent to (2,0) for Natalia, the only bundle that gives Gina a utility of 7 is? a. (7, 0) b. (0, 7/2) c. (7/4,0) d. (0, 3/2) e. (1, 3/2)
2. Consider the following four consumers (C1,C2,C3,C4) with the following utility functions: Consumer Utility Function C1 u(x,y) = 2x+2y C2 u(x,y) = x^3/4y^1/4 C3 u(x,y) = min(x,y) C4 u(x,y) = min(4x,3y) On the appropriate graph, draw each consumer’s indifference curves through the following points: (2,2), (4,4), (6,6) and (8,8), AND label the utility level of each curve. Hint: Each grid should have 4 curves on it representing the same preferences but with different utility levels. 3. In the following parts,...