Question

T-Mobile LTE 3 of 3 4:59 PM 66% action u (x1, x2) = x1^1/3x2^2/3, Derive her demand functions for goods 1 work. (20 points) Question 4 A. For the utility function u(q1, q2) = 3q1 + 2q2, write down the equation of an indifference curve with utility level 80, draw a diagram, calculate the intercepts, and calculate the slope of the indifference curve. What is the MRS (the rate which consumer is willing to substitute good 2 for good 1 and stay at the same utility level)? (10 points) B. For the utility function in part A, derive the demand functions for the two goods, when price of good 1 is $4 and price of good 2 is $3. Assume income is Y. (10 points) Question 5 Suppose Lin's preferences have the following properties: completeness, transitivity, more is better, extremes better than averages. Draw her indifference map, show the direction of increase in utility. (5 points)

          T-Mobile LTE
3 of 3
4:59 PM
66%
action u (x1, x2) = x1^1/3x2^2/3, Derive her demand functions for goods 1
work. (20 points)
Question 4
A. For the utility function u(q1, q2) = 3q1 + 2q2, write down the equation of an
indifference curve with utility level 80, draw a diagram, calculate the intercepts,
and calculate the slope of the indifference curve. What is the MRS (the rate
which consumer is willing to substitute good 2 for good 1 and stay at the same
utility level)? (10 points)
B. For the utility function in part A, derive the demand functions for the two goods,
when price of good 1 is $4 and price of good 2 is $3. Assume income is Y. (10
points)
Question 5
Suppose Lin's preferences have the following properties: completeness, transitivity,
more is better, extremes better than averages. Draw her indifference map, show the
direction of increase in utility. (5 points)

T-Mobile LTE
3 of 3
4:59 PM
66%
action u (x1, x2) = x1^1/3x2^2/3, Derive her demand functions for goods 1
work. (20 points)
Question 4
A. For the utility function u(q1, q2) = 3q1 + 2q2, write down the equation of an
indifference curve with utility level 80, draw a diagram, calculate the intercepts,
and calculate the slope of the indifference curve. What is the MRS (the rate
which consumer is willing to substitute good 2 for good 1 and stay at the same
utility level)? (10 points)
B. For the utility function in part A, derive the demand functions for the two goods,
when price of good 1 is 4 and price of good 2 is3. Assume income is Y. (10
points)
Question 5
Suppose Lin's preferences have the following properties: completeness, transitivity,
more is better, extremes better than averages. Draw her indifference map, show the
direction of increase in utility. (5 points)

Added by Nicholas C.

Question

Please give Ace some feedback