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4. Jacek has the utility function U(x,,%)=4x, 1/2+X,.lfJacek is initially consuming 64 units of nuts and 10 units of berries, then what is the largest number of berries that he would be willing to give up in return for an additional 17 units of nuts? A) 6 B) 19 O 2
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Answer #1

a quasilinear function's indifference curve is either a horizontal or vertical translates of the indifference curves. so, here it's a vertical translate where the rate of substitution is fixed irrespective of how large or small is the trade between the number of berries and nuts. mathematically, it can be shown through the image given below:AS THE UTILI FUNCTİON ÇA QUASI 니NEAK FONCTION 4 2. 2 AI MU THIS MEANS TYRT侀IRRESPECTIVE OF ANY NUTS C%)

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