For each of the following functions, i) pick three utility levels and draw the precise indifference...

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For each of the following functions, i) pick three utility levels and draw the precise indifference curves that are associate

business economics

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Answer 1

Answer #1

Answering only first Four parts

Let three Utility levels

U1= 5, IC are red

U2= 10, IC are Blue

U3= 15 , IC are green

1) linear IC

perfect substitutes Preferences

2) right angled IC

Leontieff Preferences

3) IC are vertical lines

Neutral Preferences

4) IC Slope upwards

-40- x2 -30- -20- -10- 0 5 10 15 20 X1 30 40

5) Cobb Douglas preferences

-60 X2 20 X1 40

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Answer 2

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