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Microeconomics 2nd Edition by Douglas Bernheim
Edition 2ISBN: 978-0071287616Microeconomics 2nd Edition by Douglas Bernheim
Edition 2ISBN: 978-0071287616 Exercise 2
Consider the utility function U ( X , Y ) = X 2/3 Y 1/3.
a. For the points x = 1,5,10, and 20, find the amount of Y such that the pair ( X , Y ) lies on the indifference curve associated with U = 10.
b. Calculate MRS XY at each of these points.
c. Graph the indifference curve from part (a), as well as the tangent lines for each bundle listed in part (b), indicating the slope of each.
a. For the points x = 1,5,10, and 20, find the amount of Y such that the pair ( X , Y ) lies on the indifference curve associated with U = 10.
b. Calculate MRS XY at each of these points.
c. Graph the indifference curve from part (a), as well as the tangent lines for each bundle listed in part (b), indicating the slope of each.
Explanation
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The Utility Function is given as:
(a)F...
Microeconomics 2nd Edition by Douglas Bernheim
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