Ray Starr has the utility function .
a. Does Ray prefer more to less of both goods?
b. Draw a diagram showing Ray's indifference curves corresponding to the utility levels U = , U = 1, and U = 2.
c. How can you describe the set of indifference curves for Ray?
d. If the price of x is $1 and the price of y is $1, find Ray's demand for x as a function of his income and draw a diagram showing his Engel curve for x.

Question

Ray Starr has the utility function  . 
a. Does Ray prefer more to less of both goods?
b. Draw a diagram showing Ray's indifference curves corresponding to the utility levels U =  , U = 1, and U = 2. 
c. How can you describe the set of indifference curves for Ray?
d. If the price of x is $1 and the price of y is $1, find Ray's demand for x as a function of his income and draw a diagram showing his Engel curve for x.

Quizplus · Accepted Answer

The Answer of Ray Starr has the utility function  . 
a. Does Ray prefer more to less of both goods?
b. Draw a diagram showing Ray's indifference curves corresponding to the utility levels U =  , U = 1, and U = 2. 
c. How can you describe the set of indifference curves for Ray?
d. If the price of x is $1 and the price of y is $1, find Ray's demand for x as a function of his income and draw a diagram showing his Engel curve for x.

Ray Starr Has the Utility Function