Consider a consumer with preferences represented by the utility function: u (x, y) = x+y a. Draw a set of indifference curves. b. Are these preferences strictly convex? c. Are these preferences locally non-satiated? d. Derive the marginal rate of substitution. e. Suppose instead, the utility function is: u (x, y) = x+2y Does the utility function represent the same preferences? Explain in detail.
Consider a consumer with preferences represented by the utility function: u (x, y) = x+y a. Draw a set of indifference curves. b. Are these preferences strictly convex? c. Are these preferences locally non-satiated? d. Derive the marginal rate of substitution. e. Suppose instead, the utility function is: u (x, y) = x+2y Does the utility function represent the same preferences? Explain in detail.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 1SQP
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