Question

Q1) For the utility function in part a below, draw a set of indifference curves showing utility levels U = 12, U = 16, and U = 24. U = XY What is the relationship between the two goods X and Y? (as implied by the shape of indifference curves) What is the marginal utility of X? Q2) John and Sam have the same income. The stadium sells hot dogs for $4 and popcorn bags for $3. They have different preferences; John likes popcorn much more than Sam. At their optimal bundles, John and Sam’s Marginal Rates of Substitution will be: A) the same B) Sam’s MRS will be greater. C) John’s MRS will be greater. D) we cannot tell.

          Q1) For the utility function in part a below, draw a set of indifference curves showing utility levels U = 12, U = 16, and U = 24.
U = XY
What is the relationship between the two goods X and Y? (as implied by the shape of indifference curves)
What is the marginal utility of X?
Q2) John and Sam have the same income. The stadium sells hot dogs for $4 and popcorn bags for $3. They have different preferences; John likes popcorn much more than Sam. At their optimal bundles, John and Sam’s Marginal Rates of Substitution will be:
A) the same                                     B) Sam’s MRS will be greater.
C) John’s MRS will be greater.      D) we cannot tell.

Added by Mary C.

Question

Please give Ace some feedback