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Microeconomics 2nd Edition by Douglas Bernheim
Edition 2ISBN: 978-0071287616Microeconomics 2nd Edition by Douglas Bernheim
Edition 2ISBN: 978-0071287616 Exercise 4
Consider the utility function U ( X , Y ) = X + Y 1/3.
a. Calculate MU X , MU Y , and MRS XY in terms of X , Y.
b. Three bundles lie on the indifference curve associated with U = 1. These bundles contain
and 1 unit of X , respectively. How many units of Y does each bundle contain
c. Calculate MRS XY for each of the bundles in part (b) using the formula you derived in part (a).
d. Graph the indifference curve from part (b) along with the tangent lines for each of the three bundles, indicating the slope of each.
a. Calculate MU X , MU Y , and MRS XY in terms of X , Y.
b. Three bundles lie on the indifference curve associated with U = 1. These bundles contain
and 1 unit of X , respectively. How many units of Y does each bundle containc. Calculate MRS XY for each of the bundles in part (b) using the formula you derived in part (a).
d. Graph the indifference curve from part (b) along with the tangent lines for each of the three bundles, indicating the slope of each.
Explanation
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The Utility Function is given as:
(a)O...
Microeconomics 2nd Edition by Douglas Bernheim
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