Question

2) On ONE sketch, show the indifference curves through the points (1,1) and (2, 4) for the following utility functions (a) ua (x, y)-y (b) ub(x, y) -zy (d) uy) 3,,3

Answer 1

Answer:

A) U=x*y

For (1,1), U=1*1=1

So equation for indifference curve x*y=1 for (1,1)

For (2,4), U=2*4=8

So equation for indifference curve x*y=8 for (2,4)

So Graph is

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B)

U=xy^2

For (1,1), U=1*1^2=1

So equation for indifference curve x*y^2=1 for (1,1)

For (2,4), U=2*4^2=32

So equation for indifference curve x*y^2=32 for (2,4)

So Graph is

c)

U=x^3y

For (1,1), U=1^3*1=1

So equation for indifference curve x^3*y=1 for (1,1)

For (2,4), U=2^3*4=32

So equation for indifference curve x^3*y=32 for (2,4)

So Graph is

D)

U=x^3y^3

For (1,1), U=1^3*1^3=1

So equation for indifference curve x^3*y^3=1 for (1,1)

For (2,4), U=2^3*4^3=512

So equation for indifference curve x^3*y^3=512 for (2,4)

So Graph is